British film-maker Guy Ritchie is in talks to direct a fairytale fantasy following the box-office failure of his gangster movie Revolver this year (05).

Ritchie is teaming up with Matthew Vaughn, who produced his LOCK, STOCK AND TWO SMOKING BARRELS and SNATCH hits, to adapt author Neil Gaiman's novel STARDUST, about an attempt to retrieve a fallen star.

However, the two pals have yet to decide which one of them will actually direct the project. Vaughn made his own directorial debut with last year's (04) well received Layer Cake.

An insider says, "Guy is hoping to direct the movie. But Vaughn is also considering directing the movie himself. They are working out the terms.

"The project is along the same lines as THE NEVERENDING STORY or The Princess Bride."