'Streets' director Chu could return for sequel

Disney will proceed with a third installment of its hit dance franchise “Step Up,” tentatively titled “Step Up 3-D.”

Pic will become the latest 3-D live-action film from the Mouse House, with “Step Up 2 the Streets” director Jon Chu in talks to reprise.

Offspring Entertainment partners Adam Shankman and Jennifer Gibgot, who have reupped at Disney for three years, will develop the film; the pair produced the first two “Step Up” pics.

Deal extension, which keeps them on the lot through 2011, comes after “Step Up 2 the Streets” turned in a surprisingly strong $28.7 million over the five-day Presidents Day weekend. The picture, co-financed by Disney and Summit Entertainment, cost $20 million to make.

Offspring, which was formed at Disney by siblings Shankman and Gibgot, previously produced the Sandra Bullock starrer “Premonition” and just wrapped the Burr Steers-directed “Seventeen” at New Line; that film starred Shankman’s “Hairspray” lead Zac Efron.

This week, Shankman began directing the Adam Sandler starrer “Bedtime Stories” for Disney.

Among the projects that Offspring is developing at Disney are “Undateable,” a comedy scripted by Jack Angelo and Sam Brown (with Fuse Entertainment also producing); “Monday, Monday,” a Flint Wainess-scripted comedy that is a teenage “Groundhog Day”; “Wish,” a live-action “Aladdin” scripted by Bill Kelly (“Enchanted”); a Jason Filardi-scripted “Topper” remake that Offspring will produce with Mandeville, with Steve Martin starring; and a Don Scott-scripted remake of “All of Me” that has Queen Latifah attached to star.

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