In what is being billed as one of the most ambitious projects to be made in Australia, the Jim Henson Company is partnering with Omnilab Media to make Power Of The Dark Crystal - a sequel to the 1982 fantasy hit The Dark Crystal.

Aussie directing duo Peter and Michael Spierig (Daybreakers) will helm the film, which will be made in stereoscopic 3D with a mix of live action and Henson puppetry.

Power Of The Dark Crystal will be produced by the Australia-based production arm of Omnilab Media, Ambience Entertainment, while Omnilab-owned special effects house Illoura will work on the CGI elements of the film.

Set hundreds of years after the events of the first movie, when the world has once again fallen into darkness, Power Of The Dark Crystal follows the adventures of a mysterious girl made of fire.

Together with a Gelfling outcast, the girl steals a shard of the legendary crystal in an attempt to reignite the dying sun that exists at the centre of the planet.

The screenplay was written by Australian Craig Pearce based on an original script by Annette Duffy and David Odell.

Fantasy artist Brian Froud will reprise his role as conceptual designer of the film.

- ABC/Reuters