Universal, which had been working with Streisand on the project, formally put Gypsy in turnaround, meaning it has decided not to develop the film any further.

Streisand reportedly has been working with producer Joel Silver on the project, and they are now free to shop their Gypsy around to other studios. Robert Luketic ("21," "Legally Blonde") reportedly had been tapped to direct a script by Julian Fellowes ("Downton Abbey," Broadway's School of Rock). Deadline said the project got the blessing of librettist Arthur Laurents and lyricist Stephen Sondheim before Laurents died in 2011.

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Streisand caused a commotion this past summer when she posted a photo with Lady Gaga, who has been rumored to play stripper Gypsy Rose Lee, and John Travolta, rumored to play Herbie; plus Kelly Preston and Ryan Murphy, the producer of "Glee."

Travolta spoke at the time about the possible "Gypsy" film, explaining, "Well, yeah, I mean Barbra [has been] wanting to do 'Gypsy' for years, and she’s been developing it, and I think she always visualized Gaga as Louise and maybe me as Herbie."

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During her concert tour, Streisand performed several songs from Gypsy to acclaim, including "Rose's Turn." Gypsy has music by Jule Styne.

Broadway Roses have included Ethel Merman, Angela Lansbury, Tyne Daly, Linda Lavin, Bernadette Peters and Patti LuPone. Rosalind Russell starred in the Hollywood film; Bette Midler played Rose on TV. Jack Klugman created the role of Herbie on Broadway; Karl Malden played the role on the silver screen.