As far as I know, this story came out months ago (like back after the initial Vancouver rehearsals) and is about as believable as any of the other trashrag stories about the band these days--that is, not at all. Someone just keeps "rediscovering" the story and running with it.
It's actually probably a rehash/rewrite of a story that suggested that the whole reason Sting decided to go with the reunion was he had an album worth of material recorded after the Broken Music tour that was turned down because the record company didn't like the sound of it. (So, therefore, he would reconvene the Police to record the album instead).
I'm basically believing nothing I read in the papers or hear gossiped about until it comes from the guys directly (and isn't misquoted
)