How big is this story? Depends on what you think "working on" means in this context. Working on, as in "there are lots of tracks ready to go, we've got to narrow them down," or working on, as in "Sure, a comeback might be cool, maybe. I'll work on it." At any rate, according to Game producer Mars Edwards, Will Smith's working on an album, as are some kids actually born in the early '00s instead of just being popular then.
That's all we know, and it's about fifteen facts away from being able to even take a stance here. But still: Will Smith comeback! Musical comeback, rather, because he's still one of the most bankable actors we've got. (Men in Black 3 is supposed to exist sometime soon.) Will he have to cuss in his raps to sell records this far on? We'll find out.