Jon Favreau has informed Marvel Studios that he will not return to direct IRON MAN 3, reports Vulture. Insiders report varying reasons for his departure from the franchise. Word is that the director's asking price was getting too high for the budget-sensitive studio. Moreover, Marvel was pushing to have more and more heroes added to the feature. The blog also reports that the latter was a move by Marvel to persuade Favreau to walk away. It was expected that he would of commanded $12-15 million, plus a 15% of gross after production costs were made back.

As for the search for a new helmer, star Robert Downey Jr. has director approval. IRON MAN 3 has no script and Marvel doesn't plan on starting production until 2012.