Originally slated to direct, instead he will now simply produce the film with Denise Dinovi.
Scheduling conflicts have been reported as the reason for del Toro's departure from the film which has had actress Emma Watson attached as the lead since 2012.
The studio is also in competition with Disney on its live-action musical adaptation of the 1991 animated classic "Beauty and the Beast " which Bill Condon ("Dreamgirls") is tipped to direct.
There's also TV series with the same name currently running, and a recent French language adaptation that starred Vincent Cassel.
Del Toro is in post-production on his gothic haunted house drama "Crimson Peak" and his new TV series The Strain" premieres next month on FX.
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