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The project had been fast-tracked by the studio following the success of High School Musical 3. However, Efron reportedly ditched the lead role fearing that he would become typecast as a musical star.
A statement from Paramount said: "Footloose is a project we've longed to see rebooted for a new generation. While Zac is no longer attached, we remain excited and committed to the collective brain trust of [director] Kenny Ortega [and producers] Neil Meron and Craig Zaden, who will reinvigorate the franchise.
"Their fresh take on the film will undoubtedly be filled with the same kind of breakout performances that we've come to expect from them."
The 1984 original starred Kevin Bacon as a teenager who arrives in a small town where dancing has been outlawed. The actor earlier expressed an interest in appearing in the Footloose remake to "hand over" the baton to Efron.
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