The studio was preparing an early 2010 start for the film, an adaptation of Mary Chase's Pulitzer Prize-winning play about a man who befriends a six and a half foot tall invisible rabbit.
The trade says the project has been a challenge to pull together since Spielberg committed last August. One of the biggest challenges has been setting a star to play Elwood P. Dowd, the character played by James Stewart in the 1950 film. Spielberg's first choice was Tom Hanks, but he didn't want to take over a role played by Stewart. Spielberg and Fox also courted Robert Downey
It it unknown what Spielberg may direct instead. You can see a list of possible projects here, but really, we would suggest Jurassic Park 4 to Spielberg!