According to Radar Onliner, the follow-up to the hit action flick, which offers a dark re-imagining of the "Snow White and the Seven Dwarfs," will not be directed by Rupert Sanders.
"The script has already been written, and production will begin late next year," the site reported.
"However, Rupert Sanders definitely won't be a part of the project. Rupert didn't want to be a part of it to begin with, because he is desperately still trying to save his marriage. The search is still on for a new director."
The outlet cites a source "close to the situation" for the story, but plans to move forward with the film have not been announced by the trades.
The status of the "Snow White and the Huntsman" sequel has been has been widely speculated about since Stewart was photographed in a romantic embrace with the 41-year-old Sanders, who is married with two children.
In a May, pre-scandal interview with E!, the 22-year-old actress expressed her desire to star in a sequel to the film.
"I would do it in a heartbeat," Stewart said. "I know with the people involved it would only be done [because] it's very worthwhile and it's a good movie. We wouldn't just be cashing in.
"We don't have to do it," she continued. "That's the coolest thing. There's no pressure. But to be able to expand on this would be awesome."
In August, the Hollywood Reporter revealed that Stewart had been dropped from the sequel following the scandal. Yet days later, a rep for Universal refuted the story, telling , "We are exploring options to continue the franchise, and no decisions have been made."
Earlier this month, Stewart was asked by the Hollywood Reporter if a sequel to the hit film was on the way.
"Maybe. No one's positive or anything, but I think there's a strong possibility," she said.
"Snow White and the Huntsman," which was one of the few female-driven films released this summer, grossed more than $396 million worldwide, exceeding box office expectations. Rumors that the story could spawn a trilogy have also surfaced.