Bay says he's back for 'Transformers 2'

Michael Bay has claimed that he is "back on" to direct the second Transformers movie, after resolving his differences with Paramount and DreamWorks.

It was revealed last week that the two film companies were planning to utilise HD DVD rather than Blu-ray technology when they released the first movie in the franchise.

Bay initially reacted angrily to the news, writing on a web forum that he was pulling out of producing the second moive. He wrote: "I want people to see my movies in the best formats possible. For them to deny people who have Blu-ray sucks! No Transformers 2 for me!"

However, the director has since backed down, admitting that after watching a movie on HD that he has changed his opinion.

He commented: "I overreacted. I heard where Paramount is coming from and the future of HD and players that will be close to $200 mark which is the magic number. I like what I heard."

Bay added: "Today I saw 300 on HD, it rocks! So I think I might be back on to do Transformers 2."