A trusted source close to Atlus USA, today revealed to me that Shenmue HD Remaster will be released this year. Both games, Episodes 1 & 2, may be released together rather than separately. They are presumably being geared up for launch to precede Shenmue 3, which could possibly slip into 2018.
Source: http://www.ricedigital.co.uk/shenmue-hd-remaster-coming-2017/ (May 15th Edit: If you get the "This link is inactive error, trying opening the link in a new tab instead of left clicking on it. This works for me)
First report I have heard of this possibly happening.
The source is primarily a japanese game news site. I have used this site for a while, but must admit I am unaware of it's reputation/reliability, but if someone can speak to it please share what you know.
Please lock if fake news.
Edit: Another point made
Not first report. SEGA registered Shenmue HD domains http://segabits.com/blog/2017/01/05/sega-registers-shenmuehd-com-domain-impending-announcement/
May 17th Edit: Hmmmm....