According to Wikipedia It's going to be in continuity with the rest of the series and movies. I had thought J.J. Abrams had said things to that effect before but there has been a LOT of speculation that it wouldn't be due to casting and the fact that it has been described as a "reboot". It IS a reboot but it will be in continuity with what has come before.
http://en.wikipedia.org/wiki/Star_Trek_%28film%29
Here is the part where it says it will be in continuity:
"Reaction
Some fans are concerned about whether Abrams and his team will adhere to Star Trek canon. The prequel concept in particular raises questions of whether the movie might modify continuity, as either a retcon or a reboot. In interviews, Abrams has saluted both the fans and the continuity several times. "Being involved with a series that has a passionate and vocal following makes me incredibly sympathetic. They have put up with so many incarnations along the way. These fans, they are a smart bunch. They are an intelligent group. We are very respectful and we have no intention of subverting the material," he told Donald Clarke of The Irish Times.[29] Later, to Empire, he said, "As someone who works on a show that has a very loyal and vocal fanbase, I do understand the need to be respectful ... I think we can do the fans proud".[30]
Abrams has not seen Star Trek Nemesis, and claims that the franchise eventually "disconnected" for him. However, Roberto Orci claims "immediate recall" of all things Trek, and has made comments indicating that he considers even the line of Star Trek novels to have canon value, although Gene Roddenberry never considered the novels to be canon.[31] One such novel, Enterprise: The First Adventure by veteran Star Trek writer Vonda N. McIntyre, does in fact describe the initial events surrounding Kirk assuming the position of captain of the Enterprise and having to accustom himself to Spock's characteristics. In contrast, Abrams has labeled Bryan Burk as being "relatively fresh" to the Star Trek universe. Abrams labeled himself as a "big fan", but not a "Trekker" nor a "Trekkie". [32]"
http://en.wikipedia.org/wiki/Star_Trek_%28film%29
Here is the part where it says it will be in continuity:
"Reaction
Some fans are concerned about whether Abrams and his team will adhere to Star Trek canon. The prequel concept in particular raises questions of whether the movie might modify continuity, as either a retcon or a reboot. In interviews, Abrams has saluted both the fans and the continuity several times. "Being involved with a series that has a passionate and vocal following makes me incredibly sympathetic. They have put up with so many incarnations along the way. These fans, they are a smart bunch. They are an intelligent group. We are very respectful and we have no intention of subverting the material," he told Donald Clarke of The Irish Times.[29] Later, to Empire, he said, "As someone who works on a show that has a very loyal and vocal fanbase, I do understand the need to be respectful ... I think we can do the fans proud".[30]
Abrams has not seen Star Trek Nemesis, and claims that the franchise eventually "disconnected" for him. However, Roberto Orci claims "immediate recall" of all things Trek, and has made comments indicating that he considers even the line of Star Trek novels to have canon value, although Gene Roddenberry never considered the novels to be canon.[31] One such novel, Enterprise: The First Adventure by veteran Star Trek writer Vonda N. McIntyre, does in fact describe the initial events surrounding Kirk assuming the position of captain of the Enterprise and having to accustom himself to Spock's characteristics. In contrast, Abrams has labeled Bryan Burk as being "relatively fresh" to the Star Trek universe. Abrams labeled himself as a "big fan", but not a "Trekker" nor a "Trekkie". [32]"