After a tumultuous development history, "Basic Instinct 2" is back on track with Michael Caton-Jones in negotiations to direct the sequel to the 1992 murder mystery.

The move comes within two months of the producers, C-2, settling a lawsuit with actress Sharon Stone over their failure to produce the sequel, which was due to go into production in 2000. Stone is now set to reprise her role as Catherine Tramell, the manipulative, seductive novelist at the heart of a murder investigation in the original film. MGM is set to distribute.

The sequel has had a rocky journey since the project was first announced during the boom years of Germany's Neuer Markt, from which financing was due to come. After financing evaporated, Stone engaged in a three-year lawsuit with the producers. Several other obstacles also had hampered production, including difficulty in finding a male co-star.

Caton-Jones has most recently been working on "Shooting Dogs," which is based on the true story of a Catholic priest and an English teacher caught in the Rwandan genocide. Before that, he helmed "City by the Sea," toplining Robert De Niro and Frances McDormand. His other credits include "The Jackal," "Rob Roy" and "Memphis Belle." Caton-Jones is repped by WMA.