This news comes via an interview conducted by SuperHeroHype with David S. Goyer.
They report that Fox likes the script, but the success of Wolverine will be a big part of their decision to continue with the project.
"I don’t think they would consider moving forward until the movie comes out," said Goyer.
The official plot synopsis for “X-Men Origins: Magneto,” starts shortly after the flashback from the first X-Men movie with a young Eric Lensherr (Magneto) in a WWII concentration camp. The film explores Eric's awakening to his powers, and the friendship that develops between Charles Xavier (Professor X)--as well as their ultimate parting of ways.