The studio has reportedly lost interest in the project, based around the character of He-Man, after several A-list directors turned down the big budget action movie.
Doug Liman (Jumper) and Bryan Singer (Superman Returns) were both approached but declined to take the director's chair.
The movie lost traction with Warner Bros when executive Navid McIIhargey, who professed to be a fan of the character, departed the studio.
Justin Marks penned the Grayskull script, which Joel Silver was attached to produce.
The 1987 Dolph Lundgren film Masters Of The Universe is the only other live-action interpretation of the He-Man character.