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EuroGamer.pt (translation) reports that God of War III will be shown at E3 next month. The site was apparently informed of this by a Sony representative at the Interactive & Digital Entertainment Festival, currently being held in Paris.
Don't get too excited -- even if the rumor is true, it doesn't mean GoW III will unleash bloody vengeance against the Titans this year. Although a release date is pure speculation at this point, some rumors report the launch to be next Christmas, while certain retailers have given it a placeholder release of next March.
Would be pretty cool to see the graphics. I hope they do spend a lot of time on it though, this will prob be the last game, depending on how they end it, so I want it to be perfect.