Why Will Ferrell rejected an Elf sequel and its multimillion-dollar pay cheque

Will Ferrell has turned down a multimillion-dollar deal for an Elf sequel but why? Photo /Supplied

Will Ferrell has revealed he said no to an "Elf" sequel and the $40 million dollar (NZD) paycheck that would have come with it.

The 2003 Christmas film Elf follows Buddy the Elf (played by Ferrell) as he leaves the North Pole in an attempt to find his biological father in New York City. The film has cemented itself as a well-loved holiday classic.

And despite grossing over $291 million at the box office at the time and even showcasing as a Broadway musical, a sequel never came about.

Ferrell told Hollywood Reporter "I would have had to promote the movie from an honest place, which would've been, like, "Oh no, it's not good. I just couldn't turn down that much money,'" Ferrell said.

"I remember asking myself … Could I withstand the criticism when it's bad and they say, 'He did the sequel for the money?' I decided I wouldn't be able to. I didn't want to wander into an area that could erase all the good work I've done – but you watch, I'll do some sequel in the future that's crap."

In 2013 Ferrell appeared on Bravo's "Watch What Happens Live" where he said "it would look slightly pathetic if I tried to squeeze back into the Elf tights".

However, in a radio interview with 92.3 Cleveland last year, fellow cast member James Cann hinted at bad blood between Ferrell and Elf director, Jon Favreau saying they "didn't get along very well."

Cann hinted that Ferrell wouldn't star in another Elf movie if the filmmaker stayed on.

While we may not see Ferrell in those memorable yellow tights anytime soon, it appears he will be staring in another holiday movie. Ferrell will appear in "Spirited", a movie musical adaptation of Charles Dickens' "A Christmas Carol" alongside Ryan Reynolds and Octavia Spencer.