Focus Features has pulled the plug on what was to be the director's next project.
"It was supposed to be Eastern Promises 2," Cronenberg told The Playlist regarding his next project. "But that's dead."
"We were supposed to start shooting Eastern Promises 2 in October," he continued. "[But] it's done... If you don't like it talk to James Schamus at Focus. It was his decision."
Screenwriter Steven Knight had returned to work on the sequel with Viggo Mortensen and Vincent Cassel in line to reprise their roles.
The 2006 film centred around a British midwife who becomes involved with the Russian Mafia in London.
Cronenberg's Robert Pattinson-starring Cosmopolis opens in the US on Friday (August 17).
Watch a trailer for the film below: