According to US publication The Hollywood Reporter, film studio Universal has decided to re-work the movie, which will now focus on Chris Hemsworth's Huntsman character - and not Kristen Stewart - if the film goes ahead.
While execs have declined to reveal if their decision has anything to do with Kristen Stewart's affair with director Rupert Sanders, a spokesman did confirm they were 'currently exploring options to continue the franchise'.
It's thought the original sequel was meant to follow on from the first, with Kristen in the lead, but now insiders say screenwriter David Koepp, who had already been hired to write the second movie, has been let out of his contract.
Instead, the publication reveals the project 'is being transformed into something other than the movie that Koepp had been hired to write.'
The latest in the Snow White saga comes after it was rumoured Rupert Sanders' model wife Liberty Ross banned the cheating director from ever working with Kristen Stewart again.
'Liberty let it be known in no uncertain terms that Rupert can’t direct the sequel to Snow White and the Huntsman,' a source told Radar Online.
Yesterday, Kristen Stewart's estranged (or ex?) boyfriend Robert Pattinson gave his first interview after Kristen's cheating was revealed.
In the awkward slot on American The Daily Show, poor Rob did his best to dodge questions about Kristen Stewart's affair - neither confirming nor denying the pair had broken up - simply expressing his regret for not hiring a publicist.
This is the weird things about these interviews, and now I'm going to sound like an idiot, but my biggest problem in my life is that I'm cheap.
'I didn't hire a publicist and every awkward interview, most actors have things scripted. I'm going to hire a publicist.'
Good idea, Rob.
What do you think of the latest Snow White and the Huntsman movie news? Should Kristen Stewart have been dropped for the film? Let us know in the comments box below.