According to PlatinumGames, Bayonetta 3 is "in the final stages" of development.
Following the highly anticipated Bayonetta 3 news on Nintendo's Direct on September 23rd, game director Yusuke Miyata posted a letter on the official PlatinumGames website. Miyata explained that this was his first time with the series, so he had to replay all the games and re-read the comics related to the franchise, as well as get into a "deep discussion" with Hideki Kamiya.
We are currently in the final stages of development, trying to make the core of the game more fun. We test it non-stop. Please wait a little longer so we can show you the true climax of the beloved series.
Recall that the release of Bayonetta 3 is scheduled for 2022.