MUMBAI: John Favreau, who directed the first two films of Iron Man will not direct the third instalment of the Marvel superhero series, it is understood.

Before getting into Iron Man 2, Favreau negotiated for an astronomical rise and got $10 million for the assignment along with a share of profits, while in the summer 2011 sci-fi epic Cowboys And Aliens, his price went up. Marvel, known for keeping its costs as low as possible, wasn‘t likely to pay him more.

He also recently signed on to develop and direct Magic Kingdom, a big Disney film based on its theme parks. Said Favreau, "It‘s true, I‘m directing Magic Kingdom and not Iron Man 3. I‘ve had a great run with Marvel and wish them the best."

The first two Iron Man films grossed more than $1.2 billion at the worldwide box-office and turned Robert Downey Jr. into an action hero. The third film is set to release in 2013.