The new James Bond film, due for release by 2012, has been cancelled due to a cash crisis.

Production crew were told in April the £132 million blockbuster, starring Daniel Craig, had been postponed amid "financial problems" at debt ridden movie studio MGM, which co-funded the film.

The studio has now confirmed that filming of Bond 23 has been axed completely - and it could be years before the secret agent is back on the big screen.

American Beauty director Sam Mendes had been lined up to direct the twenty-third film in the franchise.

But production company EON have confirmed in a statement: "We do not know when development will resume and cannot comment further at this stage."