The Hollywood Reporter said Tuesday the studio is re-working the follow-up to focus on Chris Hemsworth's huntsman character.
The report said Stewart would not be featured in the spinoff after she publicly admitted cheating on her boyfriend and "Twilight" co-star, Robert Pattinson, with her married "Snow White" director, Rupert Sanders.
A representative for Universal contradicted the THR story Wednesday, however.
"We are exploring options to continue the franchise and no decisions have been made," the studio spokesman told UsMagazine.com Wednesday.
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