It's quit buggy at the moment but the proof of concept is there
Alternative to this (and less buggy) is Jaynabonne's dungeon generator:
viewtopic.php?f=18&t=3546

Here is the link to try out the infinite world generator yourself! Wasn't that hard to code but it's buggy at the moment:

OK, it's working but it's ugly coding e.g. you could replace the 4 generation functions gen_south, gen_north... by four lines of code if you would rename your clone rooms like west_1 instead of west_A

  
  <function name="gen" parameters="direction" type="object">
    variable = GetRandomInt(1,14)
    return (GetObject(direction + "_" + variable))
  </function>

Then you only have to call gen("west") to clone one room. The going_xxx functions have nearly the same code so I think you could replace them by one function, too.
And instead of using rooms for cloning it should be possible to create them by script

Thanks for the advice but I'm having trouble with the create command. I don't know if I'm mixing up the parameters or what but I always get errors when trying to use create and I have trouble creating exits.
Can you think of a way that the rooms get defined as well so they don't get replaced when backtracking or going in a different direction?

First of all, how/when do you want to create new rooms? All rooms at gamestart or on the fly when the player leaves a room and the target room does not exist?

When a player leaves a room, I got it to create the room but get an error when trying to create exits.
UPDATE: It seems to work if I use the 'before enter room for first time' script.

Here is an example to create exits by script: