Baz Luhrmann has reportedly dropped Russell Crowe from his latest film, in favour of Heath Ledger.

Luhrmann's new epic is set in 1942, around the Japanese bombing of Darwin, and Crowe had been lined up to star alongside Nicole Kidman.

Crowe apparently was delaying signing up though, demanding a script approval first, and so producers told the director to find a back-up. Luhrmann met Ledger on several occasions and subsequently offered him the part.

A source told the New York Post: "Baz liked him and offered him the movie. Then Crowe came back to Luhrmann and said he'd forgo script approval and wanted to do the film, but they told him it was too late – to buzz off."

A spokeswoman for the director refused to either confirm or deny the reports.