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The Hollywood Reporter cited "budgetary and logistical reasons" for Disney's decision, which leaves the third film "The Chronicles of Narnia: The Voyage of the Dawn Treader" facing an uncertain future.
The film was due to start filming early next year with a release date tentatively set for 2010.
The two previous films in the series "The Lion, the Witch and the Wardrobe" and "Prince Caspian" have grossed more than 1.1 billion dollars worldwide since the first film was released in 2005.
The Hollywood Reporter said the decision reflected a cooling of interest by movie studios in adapting children's fantasy novels, following the success of the "Harry Potter" and "Lord of the Rings" films.
The film was due to start filming early next year with a release date tentatively set for 2010.
The two previous films in the series "The Lion, the Witch and the Wardrobe" and "Prince Caspian" have grossed more than 1.1 billion dollars worldwide since the first film was released in 2005.
The Hollywood Reporter said the decision reflected a cooling of interest by movie studios in adapting children's fantasy novels, following the success of the "Harry Potter" and "Lord of the Rings" films.
