Over the summer, Warner Bros. put David Dobkin‘s Arthur & Lancelot on the fast track at the expense of two other adaptations of the legend, but now it’s looking like Dobkin’s project may not come together at the studio, either. Though the picture’s been moving at a brisk pace over the past few months, it’s now hit a huge roadblock in the form of budget troubles so bad that Warner Bros. has told Dobkin to go ahead and set it up elsewhere if he can.

The news comes right on the heels of Legendary’s decision to put Alex Proyas’ Paradise Lost on hold for similar reasons, just as Disney did with The Lone Ranger earlier in the year. More details after the jump.

Deadline reports that Arthur & Lancelot‘s proposed $90 million budget has ballooned to $130 million — not unheard of for a big epic, but more than the studio’s willing to gamble on a film with two untested leads (Game of ThronesKit Harrington and The Killing‘s Joel Kinnaman). Dobkin’s deal gives him permission to take the project elsewhere if it falls apart at Warner Bros., and the studio has now invited him to take that out. Dobkin’s contemporary retelling of the Arthur legend was set for a March 15, 2013 release.

Though Warner Bros. is still “keen to see through Dobkin’s version of the film,” it’s rumored that Guy Ritchie‘s take on the tale — which was one of the two axed to make room for Arthur & Lancelot back in July — could be back if the studio can’t work things out with Dobkin. Ritchie’s last picture for Warner Bros., Sherlock Holmes, grossed $524 million worldwide in 2009, and its sequel, Sherlock Holmes: A Game of Shadows is expected to do well when it opens later this week. The filmmaker also recently landed the gig helming the studio’s The Man From U.N.C.L.E. after Steven Soderbergh dropped out.

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