Ortega is currently on the promotion trail for his new Michael Jackson documentary, "This Is It," which he made by editing together more than 80 hours of footage from rehearsals for the pop icon's ill-fated "This Is It" residency in London. Jackson died June 25, shortly before the concert series was to begin.
"Coming off of the extraordinary project, Michael Jackson's 'This Is It' director Kenny Ortega has decided it is premature for him to commit to his next film and will not be moving forward with 'Footloose' as previously reported," Paramount told E! News.
The entertainment news Web site said the studio declined to comment on a Variety report claiming Ortega left because he did not agree with Paramount on the tone and budget of the "Footloose" redo.
The movie is slated to begin shooting in March with Chace Crawford and Julianne Hough playing the lead roles.