The unannounced sequel, which was to be once again developed by Platinum Games, was scrapped as part of Sega's recent restructuring, according to Spong.
The project was said to be at least in the pre-production stage, and would feature a new character from the US military.
Sega went under a company-wide restructuring last month, which has resulted in a number of redundancies.
Platinum Games is currently working on Metal Gear Rising Revengeance with Konami.
The company had teased at a possible sequel going into development in late 2010.
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