Update: DC Studios head James Gunn has since clarified in a tweet that Variety's original report was incorrect.

The original article as it ran before this information is below.

Just when it seemed like we couldn't get any more dramatic news from Warner Bros. and DC Studios after the turbulent few weeks since the appointment of James Gunn and Peter Safran as co-CEOs and co-chairmen of DC Studios, another potential quagmire has emerged - and this time it involves a film that hasn't been canceled yet.

As part of a feature examining the road ahead for DC under its new leadership — where does Henry Cavill stand? Will we see more Robert Pattinson as R-Batz? Will Michael Keaton ever actually see himself on screen again as Bruce Wayne? — Variety has reported a note of concern for the upcoming sequel to Aquaman, which starred Jason Momoa as the title character.

Its sequel, Aquaman and the Lost Kingdom, is due for release in just over a year, on December 25, 2023. However, sources have told Variety that, prior to the arrival of Gunn and Safran in their new roles, the co-chief of Warner Bros. Pam Abdy met with Aquaman director James Wan to deliver some bad news. Due to the spiraling costs of the sequel, which had ballooned to over $200 million, reshoots have had to be drastically scaled back before release, putting more pressure both on the director and the production at large. Further adaptations made to the movie in its current state will cost millions of dollars that the studio is just not willing to spend.

peacemaker aquaman jason momoa
Image via HBO Max

RELATED: Jason Momoa's Future as Aquaman May End With the Sequel

Along with The Flash, The Lost Kingdom is the only remaining feature film left on the DC slate, with Gunn and Safran seemingly content to wipe the slate clean, scrub the decks and start over after a ten-year plan (which felt compressed into around 5 movies) to try and fast-track the DC Extended Universe into a place similar to Marvel Studios' Cinematic Universe.

One thing that is in Aquaman's favor is that Gunn is a fan of Momoa, who dropped by on Gunn's HBO project Peacemaker, alongside John Cena, in a cameo appearance as Arthur Curry. Momoa will also continue to work alongside Cena, and Warner Bros. having just signed a deal to appear in the action comedy Killer Vacation, on which Gunn's colleague, Safran, is serving as a producer.

Aquaman was something of a surprise hit for DC and Warner Bros. when it was released in 2018. Despite a hefty budget, estimated to be between $160 million and $200 million, it defied expectations and grossed $1.148 billion worldwide, making it the highest-grossing DCEU movie, the highest-grossing film based on a DC character - beating even Christopher Nolan's Dark Knight trilogy, and was the fifth highest grossing movie of 2018, with Momoa being singled out for praise.

For now, Aquaman's future beyond The Lost Kingdom may be in doubt, but at least audiences can console themselves in the knowledge that they'll see Momoa at least one more time as the King of Atlantis on the big screen.

Aquaman and the Lost Kingdom opens in theaters on December 25, 2023.