Update : Although the game was not shown on the first day of E3 and initial reports turned out to be a hoax, The Legend of Zelda : Skyward Sword (Zelda Wii) was revealed and the game does use cel-shaded graphics.
Numerous reports have been hitting online today during the E3 2010 conference saying a small teaser was shown of Legend of Zelda Wii to prepare for tomorrow. Reports suggest the game will be cel-shaded (very similar to The Wind Waker) and had Link wielding an unknown blade. The video also showed Shigeru Miyamoto playing this new Zelda title with the Wii Motion Plus.
However I have been unable to find footage of this myself and am only going by online reports (such as Hyrule.net). If anyone can shed some light on this, please do so in the comments. So for now, take it as rumor until we get official confirmation tomorrow when Nintendo presents Zelda Wii.
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