Updated: Ms. Fox says she it was her decision to leave Transformers 3, reports People, citing spokespeople for the actress. "She wishes the franchise the best."

Original Post:

According to Deadline Hollywood, citing an insider, Paramount Pictures has decided not to pick up the option on Megan Fox's contract for Transformers 3 and will begin to search for a new female lead immediately.

The gossip website reports that the decision was "ultimately" Director Michael Bay's decision.

Could Megan Fox be ousted by Michael Bay in favor of a new girl for Shia?

The same insider says that as Mr. Bay and Ehren Krueger are finishing up the script for the third installment of the giant robot franchise, "giving Shia [LaBeouf] a new love interest makes more sense for the story."

Here are two things that run counter to this new rumor:

First, Mr. Bay claimed last November that he won't be killing off Ms. Fox in the third film , although he has been known to lie.

Mr. Bay made these comments to calm the masses over Ms. Fox's comments comparing Mr. Bay to Hitler as well as criticizing his directorial skills.

Second and most recently, Ms. Fox was spotted in Los Angeles along with a Chevrolet Camaro all decorated like Bumblebee.

What do you think this all means? Will Mikaela Banes be taken out in the third film? Or will the character simply just go away?

Get the scoop on all the Transformers updates as they happen right here at Tformers.com. The best resource for all your Transformers news and reviews every day.