The Twilight star played the female lead in the fantasy action blockbuster, and Universal studio bosses announced a follow-up after it grossed almost $400 million (£250 million) worldwide.
However, the next installment of the film franchise was thrown into doubt last month (Jul12) when Stewart was caught romancing married director Rupert Sanders behind her boyfriend Robert Pattinson's back.
Sanders was recently confirmed as the director of the Snow White sequel, which Stewart had already signed up for - but, on Tuesday (14Aug12), writers at The Hollywood Reporter published an article claiming the actress had since been axed.
The report alleged the movie's plot would now shift its focus to The Huntsman, played by Chris Hemsworth, with Charlize Theron reprising her role as the Evil Queen.
However, a Universal representative spoke out on Wednesday (15Aug12) to clear up the rumours, insisting studio executives have yet to make an official decision on the direction of the next storyline.
The spokesperson tells UsMagazine.com, "We are exploring options to continue the franchise and no decisions have been made."