The Il Postino director announced to his cast and crew he had no choice but to halt the comedy, about the Spanish Civil War, on Saturday (31Oct09).
He cited a lack of funding from producers for the decision, reports Daily Variety.
A number of organisations have invested in the $10.5 million (£6.6 million) project, including the U.K. Film Council and the Irish Film Board, but Radford has been unable to access the money as each financing group must first sign an agreement - and bosses at Gheko Films in Madrid, Spain are said to have thus far refused to do so.
As a result, several crewmembers have yet to receive payment for their efforts.
He explains, "All the co-producers have to sign together a number of agreements. In anticipation of this, I, the crew and the facilities companies started work in good faith. However, Gheko Films has consistently failed to sign these documents for reasons known only to themselves."
Radford is now pushing for his investors to pay up - because he's determined to complete the film: "I have not abandoned the film. I have suspended it and fully intend to go back and finish it. Why would I want to abandon the film after two-and-a-half years' work and one week from the end of a very successful shoot?"
The project features Maria Valverde, Mario Casas and Jesus Carroza.