Shawn Levy isn't rushing to make 'Free Guy 2' but the sequel is "still in development".

The 54-year-old director - who was the helm of the 2021 comedy, which starred Ryan Reynolds as a bank teller who discovered he is a non-playable character in a massively multiplayer online video game - admitted while all parties are intrigued by the idea, it's got to be done right.

He told Collider: "It's still in development. I don't know if it's in the cards, but it is very much still in development.

"It's something that Disney and Fox want badly. I really try to not make sequels that don't deserve to be.

"And it's why I didn't move forward with the 'Real Steel' sequel because I didn't feel we had a second movie that could match or top the first."

Like his 2011 sci-fi drama, Levy - who is working on 'Deadpool 3' and will direct episodes for the fifth and final season of 'Stranger Things' - doesn't want to do a follow-up for the sake of it.

He added: "I'm holding 'Free Guy' to that same standard. We are still hearing ideas, developing ideas, expounding on ideas.

"But I would say that in the time that's passed since 'Free Guy' came out, the love for that movie has become more and more clear to Ryan and I, anecdotally, on sidewalks, in the press.

"So we're not going to mess with a good thing unless we can make a great thing."

He acknowledged that making a truly brilliant follow-up is a difficult task, with certain movies held as the gold standard for good reason.

He explained: "Sequels are really hard to make great. It's why we all look to a ['Terminator 2'] or an 'Empire Strikes Back' as high watermarks and frankly as unicorns. It's really, really hard.

"And again, I made three 'Night at the Museums.' One reason that I cast each one of them at such a stratospheric level, with comedic stars and comedic geniuses, is I wanted to make sure that they could be unique.

"But it's a really tough balance. And we're obviously very much exploring this with 'Deadpool,' is how do you honor what got you to that moment?

"How do you honor what people love without regurgitating what people love? It's the right balance, and it's challenging as hell."