According to Gamers Reports a recent issue of Famitsu states that Namco is looking into bringing the Tekken series to the PSP. No word on if it will be a new game in the series, a port of an existing one or a new direction for the series (ala Death by Degrees).
Tekken is my personal favorite fighting game series of all time. I wasted so many hours at the arcade playing Tekken Tag Tournament that I probably could have bought the Arcade machine itself. I cannot wait to hear more info regarding this game.