Craig and Mendes still working on Bond

Daniel Craig and Sam Mendes intend to continue work on the 23rd James Bond movie.

Despite studio MGM pulling the plug on the movie indefinitely - as well as having continuous problems with the production on 'Lord of the Rings' prequel 'The Hobbit - both the lead star and the original intended director will work on the movie, Deadline.com reports.

There is currently no timescale for the release of the action movie, with Mendes moving on to work on novel adaptation 'On Chesil Beach' and Craig filming 'Cowboys & Aliens', but both are said to be keen to be involved when financial problems at MGM are resolved.

The third movie in the franchise helmed by Daniel Craig - which has yet to be titled - was said to have been officially axed last week leaving many involved in the production left with "bad feeling".

A source told the Daily Mirror: "Members of the production crew have been told the Bond film has been canned. There is a lot of bad feeling as a lot of time, money and hard work has already gone into this."

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