Mark Reinhold, Chief Architect of the Java Platform Group at Oracle, has posted on his blog two possibilities for the release of JDK 7. We were expecting to see JDK 7 sometime towards the end of this year but with the acquisition of Sun by Oracle adding to the process it seems we'll have to wait a little bit longer.
The two possible scenarios are:
Release JDK 7 in mid 2012: This would involve shipping JDK 7 as per it's current specification.
Release JDK 7 in mid 2011 / JDK 8 in late 2012: This recognizes that a lot of the work for JDK 7 has been done with the exception of the Lambda (closures) project, Jigsaw project and some of the Project Coin enhancements. The current state of JDK 7 gets polished, tested and shipped sooner, leaving the rest to come in JDK 8.
The second two stage release sounds the more likely course of action.