Flash for Android has a storied history, and often served as the cornerstone for arguments that only Android allows mobile users to experience the "full" web on their smartphone and tablet devices. While Adobe will continue providing security updates to the Flash for Android platform, its development as a product will effectively end.
The lackluster performance of Flash in mobile (and, let's face it, any) applications and the increasing hype around HTML5, as well as Adobe's financial circumstances, are likely to blame.
The supposed announcement was leaked to ZDNet, below:
Our future work with Flash on mobile devices will be focused on enabling Flash developers to package native apps with Adobe AIR for all the major app stores. We will no longer adapt Flash Player for mobile devices to new browser, OS version or device configurations. Some of our source code licensees may opt to continue working on and releasing their own implementations. We will continue to support the current Android and PlayBook configurations with critical bug fixes and security updates.