Michael Bay has entered into negotiations to direct ‘Transformers 4’.

The prolific Hollywood director, best known for his extensive use of explosives and special effects, is said to be close to signing a deal with Paramount Pictures to direct the fourth installment of the Transformers movie franchise.

Bay directed all three prior Transformers films, but said he would not return to the franchise after completing ‘Transformers 3: Dark of the Moon‘.

However, insiders close to the deal have claimed that Paramount are leveraging the budget on his current film project ‘Pain and Gain’ to get Bay to commit to the deal.

While many expected Bay to sign onto the project, it may not be as clear cut as they think. Bay posted on his website last night that he is still undecided. “Studios are passing rumors but I’m not sure what I’m doing… I know I’m going to do Pain and Gain early spring but that’s it for right now. I’m leaving all my options on the table.”

Based on the story of body-builders gone kidnappers ‘The Sun Gym Gang’, Bay has been developing ‘Pain and Gain’ since 1999; putting the project on the back-burner to direct blockbusters like ‘Pearl Harbor’, ‘Bad Boys’, and the ‘Transformers’ films.

It has been confirmed that Shia LaBeouf will not return for ‘Transformers 4’. We will keep you updated as this story develops.

Watch Michael Bay behind the scenes of the first Transformers movie below: