Disney has announced that the film is being shelved for an undetermined time, reports Variety.
Director McG, who was also serving as a producer for the project, has already backed out, according to his rep.
The film was inspired by the Jules Verne book, 20,000 Leagues Under the Sea, and had already been done by Disney in 1954. The original version starred Kirk Douglas and was directed by Richard Fleischer.
For Captain Nemo, it was rumoured that Will Smith and Sam Worthington were being considered for roles, but neither one had been offered the part. The film was set to begin shooting in February.
Disney’s head of production, Rich Ross, maintains that the project is still a priority, like Tron and John Carter of Mars.
The next time Disney will take to the seas will be with Pirates of the Caribbean: On Stranger Tides. The film, which stars Johnny Depp and Rob Marshall (Chicago, Nine), begins shooting in May. It is the fourth film of the Pirates franchise, and is scheduled for release on July 8, 2011.
Director McG has no shortage of projects, as he will be working on Dead Spy Running and the fifth Terminator film, which will be in theatres in 2011.