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The Oscar winner was to play the lead role of director Guido Contini in the film, an adaptation of the 1982 Broadway hit.
Contini, based on Italian helmer Federico Fellini, must juggle the various women in his life, played by Sophia Loren, Marion Cotillard and Penelope Cruz. Nicole Kidman and Dame Judi Dench are also in talks to star.
Bardem blamed his withdrawal on exhaustion from work and the busy awards season for No Country For Old Men. He will take at least a year to recharge his batteries, reports Variety.
Marshall directed 2002 musical film Chicago, which won an Academy Award for best picture.
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