According to an anonymous source at CVG
LittleBigPlanet is currently in development for PSP at Sony Studio Liverpool
No other details were given besides that. However I wouldn’t be suprised by this move as LBP has a lot of potential on Sony’s portable. Chances are that this game wouldn’t have the ability to create levels, although thanks to the PSP’s WiFi I could very well see some PSP to PS3 connection options.
Or perhaps via remote play similar to Lair you can play the Blu-Ray, PS3 version of Little Big Planet on your PSP.
Sony UK has yet to comment on this.