This information comes from Epic’s Mark Rein…
“I can tell you that I got to see it at E3 and it was what I expected of course. We were very excited to play some of their demos, see how good the feel of the hardware was — it’s a very impressive system and I think it’s gonna do quite well. If Nintendo made a system that could run our engine, we’d be on it like water on fish.’ And so when someone asked me what I thought about the Wii U, I said, ‘Water, meet fish.'”
Rein didn’t explicitly say that Unreal Engine 3 is running on Wii U, but he more or less implied it. Rein has had a longstanding history with the Wii, mainly relating to him saying over the years that the console can’t handle the technology. Now that the Wii U stacks up to other consoles (and perhaps surpasses them in some ways), there’s no way that Unreal Engine 3 couldn’t run on the system.