Jareth sends his minions to capture Toby and return him to the Labyrinth to take his place as the heir to the Goblin Kingdom. The story takes place fifteen years after the events of the original film and centers on Toby, who is now a teenager himself. The four-part story was written by Jake T. In 2006, Tokyopop released a sequel manga entitled Return to Labyrinth. After splitting with Marvel Studios over creative differences on a sequel to his 2016 Doctor Strange movie, Scott Derrickson was announced to helm the Labyrinth sequel with a script from Maggie Levin. With the Alvarez/Perlman version of the movie in limbo, the project again gained some steam after Deadline reported that a sequel was in development with Tristar Pictures. Alvarez commented on his 'completed' script in an October 2018 Fandango interview, confirming the project as 'a direct continuation of the first movie many years later.' ДЄlvarez appeared on the 'Boo Crew' podcast in 2020 where he announced he had left the project. Deadline elaborated that the film would not be a reboot or a sequel, but rather a story within the universe of the original film. ДЇifteen months later, Deadline announced that Fede Alvarez would direct the project from a script he would co-write with Jay Basu (previously announced screenwriter Nicole Perlman's name was omitted from the report). Lisa Henson was named as a producer on the film which would be overseen by Nicole Brown at TriStar Pictures. The news came just twelve days following the death of Labyrinth star David Bowie. Two years after Henson released a statement denying that a Labyrinth-related movie was in the works, The Hollywood Reporter announced that the movie would be rebooted with a script from Guardians of the Galaxy screenwriter Nicole Perlman. ItвЂ™s one of those legacy titles that is floated at most meetings, but, sadly, nothing is actually in development at the moment. вЂњThere are currently no plans to reboot, revive, or make a sequel to Labyrinth. An article published in Variety on Which Witch - a film in-development at the time with The Jim Henson Company - mentioned a Labyrinth sequel among other projects being developed by the studio. In October 2014, news spread that a sequel to Labyrinth was in the works. Producer Michael Polis stated that the project became 'something probably more closely associated with 'Labyrinth' in terms of style and substance.' Fantasy author Neil Gaiman and artist Dave McKean were hired to write and direct a film similar in spirit to Labyrinth and the fantasy film MirrorMask was produced by the Jim Henson Company and released in 2005. However, the decision was ultimately made to avoid making a direct sequel to the film, and instead produce a fantasy film with a similar atmosphere that could stand along side the other titles in the Henson Company's library of fantasy films. The Curse of the Goblin King was briefly used as a tentative title for such a project and Brian Froud was contacted to provide conceptual designs and guidance once again.

Strong DVD sales of Labyrinth prompted the Jim Henson Company and Sony Pictures to look into making a sequel to Labyrinth in the early 2000s.

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