In an interview with Develop, President Gabe Newell said that Valve had no designs for a new Source 2 engine. The studio intends to keep developing the existing Source engine through regular updates and fixes.
"There are a lot of advantages on iterating on a mature and stable and shipped codebase, as opposed to starting over again," said Newell to Develop.
"I think, when you see a game like DOTA 2, you'll see how developers can get a lot more out of Source than most companies can get from a scratch-built engine."
Newell said that the company had no plans to contend with Epic's Unreal Engine.
"We're really happy if another studio wants to use our engine, but we're not going to go out there and try to muscle in nor what Epic Games does," Newell said.
"A few people have used our engine, and I think a few more will find it useful now that we have a PS3 edition."