The Kerala theatres association, Film Exhibitors United Organisation of Kerala (FEUOK), have decided not to release the much-hyped Avatar sequel, Avatar: The Way of Water due to disagreement with the profit sharing clause in the contract. The association made the announcement on Tuesday as they find the terms and conditions of screening and revenue sharing unacceptable.

According to reports, the distributors are demanding a 60% share of revenue in the first week of release in Kerala. It is learnt that the theatre owners are not ready to go beyond the usual 55% share. The theatre owners have also alleged that they were unaware of the change till they received the agreement. FEUOK has stated that the James Cameron film will not be screened in the 400 theatres under their organisation.

Avatar: The Way of Water is set to release in India on December 16. Besides English, the makers are also planning to release it in Malayalam, Hindi, Tamil, Telugu and Kannada.

The sequel to the 2009 blockbuster is set more than a decade after the story of the first film ends and follows Jake and Neyitiri as they build their family while also battling their past which seems to be catching up with them. The film stars Sam Worthington, Zoe Saldaña, Sigourney Weaver, Stephen Lang, and Kate Winslet.