Stephenie Meyer recently let out what she'll do with Midnight Sun when she was answering New Moon questions. Here below is what she said on her site:
To address the many, many questions about Midnight Sun:
I've found that there really isn't any answer I can give that changes the substance or tenor of the myriads of requests, pleadings, and demands I get for Midnight Sun to be finished, so I feel a little silly answering that question at all. But it's the most popular question, so I'll take another stab at it.
I am not working on Midnight Sun now. I don't have a plan for when I'll get to it; I don't know now what the right time for it will be.
In your questions, there were some erroneous conclusions about the situation which I'll try to set straight. First, Midnight Sun is not finished and locked in a safe, waiting for me to be done angsting over the leak. If it were done, I would be throwing it on the bookstore shelves myself. I'd love to be able to give it to all the people who are anxiously waiting for it. Second, I am not upset about the leak. I haven't been for a long time; I was over it after about three weeks. Third, and most important, I am not trying to punish anyone. Not the persons who leaked it, not the people who read the leak, nobody. As I said, it would make me very happy to be able to give it to anyone who wants it.
So why the hold up? Because it's not finished and lying in a safe. It's not done, and finishing it is not a simple matter of sitting down in front of my computer and typing out the words; the words have to be there in my head to type out, and right now, they're not. I have to be in the zone to write any story, and trying to force myself into that zone is a waste of time, I've found. I'll get back to Midnight Sun when the story is compelling to me again. Just because people want it so badly does not make it more write-able; kind of the opposite, actually. I need to be alone with a story to write, and Midnight Sun feels really crowded, if you know what I mean.
People write for different reasons. I have always written to make myself happy. If I'm enjoying a story, feeling the creativity flow, engrossed in a world, then I write and I write fast. If I'm not into it, I can't write. I've never been someone who writes on demand and I can't imagine working that way. As cool as it would be to say to my favorite author, "You know, I'd really like to read a great book about a narwhal mafia. Write that for me, 'kay?" or even "I'd love a sequel to that last one," that's not how it works. How it works is that my favorite author writes a new book about whatever he/she is interested in. Maybe it takes a year, maybe it takes five. If it's something I want to read, I buy it or I check it out at the library. If not, I find something else to read. The end.
(All of this goes for writing about vampires in general, too. Vampires and I? We're on a break.)
I'm pretty sure this won't slow the pleadings and the demands, but I didn't want you to think I was ignoring the question.