Apple and Pixar CEO Steve Jobs is involved in a contractual dispute with Disney CEO Michael Eisner.

The dispute could prevent the production of another Toy Story sequel, according to the Los Angeles Times.

Contractually, Pixar is obliged to deliver three more original films by 2005 - and sequels don't count against that commitment. Jobs asked Eisner to waive then no-sequel clause, but Eisner spurned the request, the report claims.

Jobs said: "The next three films are spoken for - we wanted to make Toy Story 3, but in the current deal it's not going to happen."