Setback for Perth film studio plans

Murdoch University has ended negotiations with a company that planned to build Perth's first dedicated film studio, but the university remains open to other options for its eastern precinct.

Perth producer Stephen Van Mil announced in October his production company, Impian Films, was working with British firm Extraordinary Limited to build the $50 million studio by 2016.

The facility at Murdoch University was expected to include three film studios, a film school and museum, a 260-room hotel, restaurants, bars, a cinema and nightclub.

But the university confirmed a letter of intent it signed with Extraordinary in December was now void, although it was still keen to receive expressions of interest from other parties.

It is understood Mr Van Mil is working on a proposal.

Extraordinary chief executive Chris Samwells told AAP his company's original concept had to be changed to fit Murdoch University's long-term development plans.

"This increased the budget on the project by a factor of over 30 per cent and practically relinquished control to the university," he said.

But Murdoch's director of commercial services, Karen Schmidt, told AAP the university never received a formal proposal from Extraordinary.

"As detailed in the letter of intent, the formal proposal from Extraordinary Limited needed to include as a minimum a business case, funding model, feasibility study, design specification and development time line," she said.

The information was supposed to be provided by Extraordinary within three months of signing the letter of intent, but that time frame lapsed in March, she said.

Ms Schmidt said the letter of intent ended in May.

Mr Samwells said there was no ill will between him and the university.

"We are deeply saddened that this wonderful project did not work out," he said.

Mr Samwells said Extraordinary intended to find another studio location in Perth.