As far as I know, there may not be a 'Never Ending Story 3' officially released. But the film industry is always evolving, and new projects can come up unexpectedly.
It could refer to a very long and perhaps convoluted narrative that seems to go on without end, like an epic saga with countless sub - plots and characters.
As of now, I'm not sure if they are remaking 'The Never Ending Story'. There hasn't been a lot of buzz in the mainstream media about it recently. But in the world of Hollywood, anything is possible. They might be planning it in secret or it could be in the very early stages of development that we don't know about yet.
A 'never ending story' is a tale that seems to go on indefinitely. It might be a story that loops back on itself, or has such an open - ended nature that it can't really be said to finish. For example, some epic fantasies have such vast and complex worlds that new stories within the world can always be told, making it seem like the overall story never ends.