Cut and paste from a thread I did awhile ago and welcome to the base.
Let me start by saying that I hope that Jiraiya doesn't return. I feel that his death was epic, it elevated the story in so many ways and I feel it would be diminished if he somehow returned. That said, I do want to make folks aware of this tidbit that may potentially point to a Jiraiya return.
From Jiraiya Goketsu Monogatari:
The story begins with Tsukikage Gunryô Miyukinosuke, who had been appointed Regent of the Shogunate traveling to take up his office in Kamakura. On the way there, he was attacked by a Giant Snake and was rescued by a young swordsman Orochimaru (the Giant Snakes son), Tsukikage was so grateful that he took Orochimaru into his own family, however Orochimaru was possesed by the Giant Snake, which had been scheming to swallow the world and wipe out human beings. Through the curse created by the Giant Snake, and Orochimaru acting as the embodiment of the curse, the Tsukikage was possessed and killled off all of his retainers and heirs. Thus making Orochimaru his sole heir. Further, Tsukikage's ambition grew so that he wanted control of the whole country. He first convinced the Shogunate that the Ogata and the Matsuura families, were plotting to overthrow the government. The Tsukikage then deceives the Ogata and Matsuura families to obtain two treasures the Seal of the Moon and Flag of the Shogun. He then kills the families and throws their two heirs off a cliff, Jiraiya and Tsunade.
Fortunately, Jiraiya and Tsunade were rescued by an old hermit, Senso Dôjin. Senso Dôjin raises the two heirs and later informs them of their families betrayals. Jiraiya and Tsunade want revenge for what has happened so Senso Dôjin trains them in the arts of Toad and Snake magic. Senso Dôjin tells Jiraiya and Tsunade of the triangular balance (Snake, Toad, Snail) and also a way to overcome the balance by obtaining the wave cutting sword Namikirimaru. He then prophetically tells Jiraiya that should he become wounded by Orochimaru that he must drink the blood of a woman born in the Year of the Snake, the month of the snake and the hour of the snake.
Jiraiya confronts Orochimaru and is wounded. He is saved by Tsunade to takes him to heal in a therapeutic bath but he never recovers until he happens upon a young woman working for her father who is an inn keeper. It turns out that she is in fact Jiraiya's sister and she was born in the Year of the snake the month of the snake and the hour of the snake. Her name was Ayame.
Now the Ayame we know, Teuchi's daughter, was not born in June. Ayame was born in Feb, but perhaps that date isn't accurate, if she isn't really Teuchi's daughter. Another thing to consider is that this is the Year of the snake 2013, the month of the Snake is June, and the hour of the snake is 9-11. Perhaps Kishi is planning for a June surprise. Who knows?
Some other interesting facts I came across while researching, Jiraiya Goketsu Monogatari was written over the years by several different authors, but the Kabuki drama was written by Kawatake Mokuami who is credited with being one of the greatest, if not the greatest Kabuki playwright. You may recall Jiraiya's Kabuki dance as he introduces himself. Kawatake is also one of the most prolific having some 360 plays (130 domestic, 90 historical and 140 dance dramas). His plays were very popular due to the use of anti-hero types (thieves, rogues, etc) and for their explicit love scenes. Kawatake was also disowned by his family due to his frequent frollicks with Geishas. Pervy Sage would be proud.