Spanish film director Juan Carlos Fresnadillo, who previously directed 28 Weeks Later, was due to helm the movie with Pirates of the Caribbean director Gore Verbinski as producer.
However, Fresnadillo has told IndieWire that the BioShock movie was on hold and that he had moved on to other projects.
"To be honest, by now, I'm completely out of that, and developing other stuff," revealed Fresnadillo.
"Right now it's on hold. The studio and the video game company, they have to reach some kind of agreement about the budget and the rating," he added.
A BioShock movie adaptation has been in the pipeline for a number of years, but has suffered numerous budgetary setbacks.
Verbinski was previously attached to the project as director, but complained that nobody was willing to financially back the movie while it carried an R rating.
"I couldn't really get past anybody that would spend the money that it would take to do it and keep an R rating," Verbinski said. "Alternately, I wasn't really interested in pursuing a PG-13 version. Because the R rating is inherent. Little Sisters and injections and the whole thing," said Verbinski.
The next game in the series, BioShock Infinite, moves away from the underwater setting of Rapture and into the floating city of Columbia.
BioShock Infinite will be released on Xbox 360, PlayStation 3 and PC on October 16 in North America and October 19 in Europe.
> Read our preview of BioShock Infinite
> Read our BioShock Infinite interview with Ken Levine
Watch a trailer for BioShock Infinite below: