Marc Guggenheim, who was credited as one of the writers of the screenplay by Cosmic Book News, has denied the report.
"Absolute bulls**t," he wrote in an email to ComicBook.com
The report claimed that the principal cast of Green Lantern - including Ryan Reynolds (Hal Jordan), Blake Lively (Carol Ferris), Mark Strong (Sinestro) and Geoffrey Rush (Tomar-Re) - would be returning for the sequel.
It was said to be based on the 'Sinestro Corps War' storyline - introducing Arkillo and Amon Sur in a plot in which Ferris is kidnapped to the organisation's home world of Korugar.
There have been rumours of a follow-up to the critically panned 2011 movie, especially in light of the plans for an ensemble Justice League film in 2015.