Aardman Animations Ltd and Hollywood's DreamWorks Animation SKG may have ended on Tuesday but Nick Park, creator of the Wallace & Gromit animated pals, is busy at the drawing board creating a Wallace and Gromit sequel.

"Wallace and Gromit are alive and kicking," Aardman spokesman Arthur Sheriff said on Wednesday. "There is a project on the table right now.

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"It could be television, it could be a feature film. That depends on how the storyline develops. It will go into production as soon as he has finished writing it."

DreamWorks and Aardman ended their seven-year partnership on Tuesday, saying their "ambitions have moved apart."

One problem was that the two failed to follow up on the success of their 2000 joint production "Chicken Run".

Wallace & Gromit: The Curse of the Were-Rabbit was released in 2005 to critical acclaim and was awarded the Oscar for best animated feature. But box office receipts were weaker than expected.

In their first full-length film, the dim-witted Wallace and his faithful hound took on a mutant rabbit bent on destroying the town's annual Giant Vegetable Contest hosted by Wallace's secret love, Lady Tottington.

Peter Sallis reprised his role voicing Wallace, Ralph Fiennes played the evil Victor Quartermaine and Helena Bonham Carter provided the voice of Lady Tottington.