The Minecraft creator, who picked up the 'Special Award' at the BAFTA Video Game Awards 2012, revealed progress has been delayed due to the Double Fine Adventure Kickstarter project.
"I meet with Tim [Schafer] at GDC, and basically what he said was, well now we've got three million more dollars here [for Double Fine Adventure]. So we're going to be busy for a while," he told Digital Spy.
"I said we also didn't realise how much money you'd need. We discussed different ways it could be funded, but I still think that would be a very interesting investment to make, but we haven't decided anything either way."
While he confirmed that the project is on hold, Persson will "definitely" discuss the title with Schafer again at some point.
> Digital Spy talks to the BAFTA Video Game Awards 2012 winners - video
> Jonathan Ross, Valve on Portal 2 winning big at Video Game BAFTAs - video
Earlier this year, Persson offered to help Double Fine fund Psychonauts 2, which followed comments made by Schafer to Digital Spy that he would "love" to make the game but lacked the funds to create it.
Watch the video of Markus 'Notch' Persson at BAFTA Video Game Awards 2012 below: