Scott Derrickson "doesn't know" what's happening with the 'Labyrinth' sequel.

The 'Doctor Strange' filmmaker was announced to be helming the fantasy back in 2020 after Fede Alvarez - who had signed up in 2017 - dropped out, but he admitted a script for the film still hasn't been finalised.

He told ComicBook.com: "I don’t know what’s happening with that.

“We never got the script all the way to a place where the studio wanted to make it, but I was very proud of the work that we did on it. And it’s a hard, hard project to turn into something commercially viable, because it’s so imaginative and surreal that there’s no way that it can be done cheaply.

"And at the same time, it’s so daring and different that it is a tough movie for a studio to feel competent that it has enough commercial value to earn a profit.

"So I think that it’s a tough nut to crack, but all I can tell you is I’m very proud of the work that we did on it. We certainly had a great film in mind.”

Scott teased there was a "really cool idea" on how the sequel would address the Goblin King, who was played by the late David Bowie in the original 1986 film.

He said: “Because the project is still in development, I probably shouldn’t say. Because I think we had a really cool idea, but I don’t want to blow that in case the movie does get made.”

Original star Jennifer Connelly previously told Collider in 2021 she had "had conversations" about being part of the sequel but "wasn’t “really sure where that’s going to land.”

Jim Henson's original film followed teenager Sarah (Connelly) as she embarked on a quest to rescue her baby brother Toby after he is kidnapped by Goblin King Jareth.