The Brit was set to start work on the live-action adaptation of the DC Comics bounty hunter saga after the super-sleuth picture had wrapped last year (09).
But following the success of the detective movie, starring Robert Downey Jr. and Jude Law, Ritchie has bowed out of Lobo to focus on a second Sherlock Holmes, according to producer Joel Silver.
He tells the Los Angeles Times, "I don't think he's going to do it (Lobo) now. The studio wants us and Guy to focus on making another Sherlock Holmes. So I think we're going to be doing that. But we're seeing what happens with this. Everybody is analyzing everything. It's all kind of happening right now as we talk.
"Sherlock is sitting at just about $400 million in worldwide gross and showing itself to be pretty effective and pretty strong. So we're trying to see if we can do something quickly with another Sherlock Holmes movie. We have some ideas and some good story points.
"Downey loves the experience of playing Sherlock and would love to play him again, and I'd love to see him play it again. Jude and all of them will be back and it will be great."