Spider-Man 4 has been scrapped and the franchise will be "rebooted" with a new actor replacing Tobey Maguire.
The blockbuster sequel was due to start filming next month for release in 2011.
But director Sam Raimi was unhappy with the direction of the script and the film has been abandoned, along with stars Maguire and Kirsten Dunst.
Instead, Columbia Pictures announced plans for a replacement movie focusing on the High School years of Spidey's alter-ego, Peter Parker. It will be released in summer 2012 with an as-yet-unnamed actor in the starring role and a script by James Vanderbilt.
Last week, Columbia announced that Spider-Man 4 was on indefinite hold due to script problems. Abandoning the project will cost millions of dollars, as preliminary work on the special effects had already begun.
The first three films turned the Marvel Comics superhero into a box office hit, taking more than $2.5m (€1.7m).
Studio co-chairman Amy Pascal said: "A decade ago we set out on this journey with Sam Raimi and Tobey Maguire and together we made three Spider-Man films that set a new bar for the genre.
"When we began, no one ever imagined that we would make history at the box office and now we have a rare opportunity to make history once again with this franchise.
"Peter Parker as an ordinary young adult grappling with extraordinary powers has always been the foundation that has made this character so timeless and compelling for generations of fans.
"We're very excited about the creative possibilities that come from returning to Peter's roots."
Raimi said in a statement: "Working on the Spider-Man movies was the experience of a lifetime for me. While we were looking forward to doing a fourth one together, the studio and Marvel have a unique opportunity to take the franchise in a new direction, and I know they will do a terrific job."
Columbia must continue actively developing Spider-Man films or the property will revert back to Marvel, according to Variety.
Maguire said in an interview last week that there was "great stuff in terms of story and script" for Spider-Man 4.