It appears the game will stay in the US setting with any rumors of a return to London or a new non-US place was squashed.
Quote:
We go backwards and forwards on it. There are very interesting crime stories and other stories you can tell about anyplace in the world. Whether that would work with Grand Theft Auto — when so much about Grand Theft Auto is about the Americana, about the American media — is something I’m not sure about.
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http://www.rockstarnetwork.net/conte...-Remain-in-USA
Also teased was the producer from GTA III and Red Dead Redemption, Dan Houser, is in charge of the project and GTA V could have a more "Hollywood"-like style cinema feel as a result.
http://www.igta5.com/playstation-off...rking-on-gta-v