It's a dark day for Twin Peaks fans.
Lynch, who created and executive produced the original series, said on Sunday that he is leaving the planned reboot. He was set to direct the new episodes.
He tweeted what happened.
"Dear Twitter Friends, Showtime did not pull the plug on Twin Peaks," he began. "After 1 year and 4 months of negotiations, I left because not enough money was offered to do the script the way I felt it needed to be done."
"This weekend I started to call actors to let them know I would not be directing. Twin Peaks may still be very much alive at Showtime," he continued. "I love the world of Twin Peaks and wish things could have worked out differently."
The Twin Peaks Festival posted an identical message from Lynch's office on their Facebook page
A Showtime spokesperson confirmed to TVLine
that the project was still moving ahead and would begin production this year as planned. They plan to air the new episodes in 2016.
Flashback: ET visited the original set of Twin Peaks back in 1990. Check it out: