Australian visual-effects studio Animal Logic, which produced the groundbreaking effects for The Lego Movie, is to work on the animation.
Neither Cameron nor Weta Digital, which won an Oscar for its groundbreaking effects work on Avatar, has yet made any public comment on TVNZ's report.
"About five years ago, I developed a couple of movies using computer effects, and I began thinking about what projects could make use of this groundbreaking effects technology," he says.
Though he admits: "It's a shame that – as is so often the case with groundbreaking effects movies – the emotional content can't quite match up to the visual".
Men in Black owned the summer '97 box office with its unique premise, charismatic cast, and groundbreaking effects.
The original movie also boasted groundbreaking special effects, which have been surpassed in the new one.
Although popular with audiences and celebrated for its groundbreaking technical effects, it was not a critical favorite.
The company, which was included in Disney's £2.4bn purchase of Lucasfilm in 2012, was set up in 1975 by the Star Wars creator to pioneer groundbreaking special effects in his original space saga.
That drove the primitive technology forward: puppets that could "speak", groundbreaking miniature effects and even the first video assist – a system that allowed the entire crew to see what the camera was shooting, not just the cameraman.
