The fourth part of the Spyro franchise is in development.
Activision hired Studio Benox to develop Spyro 4, according to a Reddit user. The working title is Rainbow and was originally started by Vicarious Visions, but they are working on Diablo.
The new game is very similar to the original Spyro trilogy, but now it will have some RPG elements such as leveling up the charge attack, the flame, sliding, etc. There will also be small fetch quests in certain areas in the game and you can now choose the level of difficulty between standard and experienced.
The announcement of the new dragon adventure should take place this year, the game is not expected to be released before the second quarter of 2022.