Contrary to earlier reports, Spider-Man: Far From Home director Jon Watts is not yet attached to direct Spider-Man 3 for Sony. After becoming Sony's highest-grossing movie of all-time, the future of the Spider-Man franchise appeared to be brighter than ever. It was believed that the third film would be part of the Marvel Cinematic Universe, but that is currently not the case. Marvel Studios is no longer set to be involved with future Spider-Man films following talks over the deal being restructured falling apart.
This shocking piece of news has many different angles to it and is continuously evolving. When it was initially revealed, the reports stated that Disney wants to co-finance and split the profits of any future Spider-Man film that Marvel Studios and Kevin Feige were involved in. Sony reportedly balked at that proposal - later blamed Disney for the deal falling through - and reportedly are planning to make two more movies starring Tom Holland as Peter Parker aka Spider-Man. At the time, it was also reported that Watts would direct both installments.
That news originally came from Deadline, but they have now updated their piece to clarify that Watts is not signed on to direct either of the upcoming sequels. They labeled his potential return as an "open question." The report notes one reason Watts may not return is that studios are heavily courting him for other jobs at the moment. Whether or not Watts does direct Spider-Man 3 and 4, Holland is reportedly under contract for the two sequels.
If Watts does not return to direct Spider-Man 3, the reason such a decision is made could be telling. Sony could potentially look to find their guy to bring Spider-Man into their universe and may decide that Watts is not the right fit for such a move. But, he's also directed two critically adored films and is behind two of the most successful Spider-Man movies ever. That said, this could also be Watts deciding to walk away from the franchise if Marvel Studios isn't involved. He was hired to shepherd Spider-Man into the MCU after all, and if he can no longer access parts of the story he was building, then that could be reason enough for him to move on.
Even though Watts is not currently signed on to direct Spider-Man 3 (much less Spider-Man 4), this is still very early on. It wasn't long ago that the reports said he was directing these films, so something could easily change - maybe even with a deal between Sony and Marvel still being worked out. Sony has yet to even announce when Spider-Man 3 is coming or that it has writers attached. Figuring out whether or not Watts will direct could take some time, especially if his decision rests on whether or not Sony and Disney/Marvel will find a compromise to extend the deal. But as of right now, the director's chair for Spider-Man 3 is wide open. And, if multiple studios are courting him for new projects, then there's no reason for Watts to sign on when the status of the franchise has so many questions.