It was going to be called "Starfighter" and was planned for a
release in 2010. The only casting that had been announced was
Norman Snow reprising the role of his character Xur. However, that
year has now passed and production for it never happened.
Trivia: The original "Last Starfighter" (1984) was the first
film to have computerized special effects.
As of 2011, producer Don Murphy has been quoted as saying that
copyright issues are holding up the sequel.