FIDE have signed an agreement and it is to take place in India.
Magnus has released this:
"After qualifying for the World Championship match by winning the London
Candidates I have been highly motivated for, and looking forward to the
World Championship match against reigning champion V. Anand.
I’m deeply disappointed and surprised by the FIDE decision to sign a
contract for the 2013 match without going through the bidding process
outlined in the WC regulations, and for not choosing neutral ground.
The bid from Paris clearly showed that it would be possible to have more
options to choose from.
The lack of transparency, predictability and fairness is unfortunate for
chess as a sport and for chess players.
My team and I will now start preparing for the match. The main thing now
will be to come to an agreement with the Indian Chess Federation and FIDE
regarding terms and conditions before and during the match. I really hope
this process will run quick and smoothly."
The fear was he may walk if India was the venue.
It seems not which is excellent news.