Promising FPS sequel Prey 2 has been cancelled by publisher Bethesda, according to an inside source.

As spotted by a NeoGAF poster, Dutch site PS Focus claims to have intel that the plug has been pulled on developer Human Head's title, and that an official announcement will come next week.

The fact that a Prey 2 presentation scheduled for GDC in San Francisco earlier this month was cancelled a few weeks before the show got underway adds some weight to the report.

"Yes, Zenimax forced us to pull all Prey 2 related talks from GDC. I'm pretty devastated by the news. This was to be my first conf talk," Tweeted Human Head lead programmer Brian Karis at the time.

Bethesda has so far declined to comment - we'll update if that changes.

For more on the game, which was one of the highlights of E3 2011, see Eurogamer's Prey 2 preview.