"We deny this news and also deny that talks of such a project have ever taken place. There is no such project in discussion and all stories with regards to this film are untrue, " Ajay's spokesperson said in a statement.
Rumours were abuzz that work on the sequel, directed by Kuku Kohli, was on and Sonakshi will be replacing Madhoo as the lead actress.
The actor catapulted to fame with the action thriller, which was loosely based on 1990 Malayalam film "Parampara".