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The actor portrayed the father of Ben Stiller's Greg Focker in the 2004 film, but talks with Universal allegedly collapsed over salary and scheduling issues.
Hoffman's character Bernie reportedly makes a cameo appearance in John Hamburg's Fockers script.
Barbra Streisand's Roz Focker also features in the story, however the singer and actress's involvement in the movie has yet to be confirmed.
Little Fockers, starring Stiller, Teri Polo, Robert De Niro, Owen Wilson, Jessica Alba and Harvey Keitel, will begin production next year for a July release.
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