A remake of LoZ will probably come to pass in the future, but not yet. Aonuma's current remake obsession is with ALttp, OoT being his first attempt, which just ended up being a prequel to the games instead of a remake. He still mentions his interest in remaking ALttP, so it's doubtful that any other remake would come about before he meets his that personal goal.
As far as placement? Who knows. They could even squeeze the title in between titles. Even if that figure is the Master Sword, it doesn't necessarily mean that the game takes place around the time of its creation. For all we know, some soul could be sealed within the Master Sword, or perhaps the figure isn't even the essence of the sword, but maybe a new power. Nintendo comes up with some really out there stuff sometimes, so it'd hard to guess at what it might be.
In any case, no, I doubt that this game will be a remake of anything, though it would be nice to see the original LoZ remade. There's plenty of room for development on it, especially in a 2D-to-3D transition.