'The Wolf Among Us 2' is still in development seven years after it was first announced.
Telltale Games has rubbished reports claiming the sequel is in peril, with claims the team were at a "critical point where they might have no choice but to shelve it".
However, a spokesperson told Eurogamer: "As a rule, we don't comment on rumours and unsubstantiated reddit threads.
"But development on 'The Wolf Among Us 2' continues and we're excited to share more about the game with Telltale fans and our community when the time is right."
The game - which is based on the 'Fables' comics by Bill Willingham - was first announced in 2017, but it was shuttered the following year after the studio was rocked by layoffs.
However, in 2019, Telltale was restructured with new management under owners LCG Entertainment, and the title was later reannounced and started pre-production.
Back in December 2019, LCG boss Jamie Ottilie said: "'The Wolf Among Us' is one of the most popular titles in the Telltale catalog, so we are thrilled to announce that development on 'Wolf 2' has again started and assure all of the series' fans that it is in good hands.
"Partnering with AdHoc Studio enables us to work with many of the key creative and development talent from the original Wolf series while strategically growing the new Telltale."
With AdHoc Studio on board, it meant directors Nick Herman and Dennis Lenart were on board to reunite with writer Pierre Shorette and composer Jared Emerson-Johnson.