The possibility of Jellal being alive is 80%. In the chapter where Erza is fighting Azuma, Jellal is shown tortured in prison. Proving that he has a high chance of being alive.
Yes, he's alive...in the manga 7 years later he, Ultear and Meredy created an independent guild called 'Crime Sorciere' ^_^ if you wanna find out, read chapter 263 and I bet you don't wanna miss the JeRza scene in 264 too x3
The answer is still unknown. Mashima-sensei still didn't mention him on the previous chapters but let's just hope that he is still alive and eventually will be released in the prison.
posted over a year ago
he's alive all along, he escaped from prison through the help of Ultear and Meredy, and now they formed an independent guild which extinguishes dark guilds. :)