The 71-year-old actor is known for starring as Dutch in the sci-fi movie franchise, but was noticeably absent from this year's 'The Predator' - which was directed by Shane - after he turned down the brief cameo role that was offered to him.
Now, Shane has revealed it was the studio who wanted to reduce Arnold's character to a cameo in order to create a ''fresher'' movie, but insists he would be willing to ''open up'' a major role for the actor in a future movie.
Speaking to Digital Spy, 56-year-old Shane said: ''The studio wanted a fresher movie that featured an evolving cast. They didn't want to hinge the movie on the re-emergence of Schwarzenegger. It would probably be more of a matter of his showing up briefly and just participating at the very end, at the climax of the movie. Understandably - and believe me, I completely get it - he said, 'Look, that's kind of a small part, and I don't really think I want to do that. I'm off to do Terminator with Jim Cameron, basically. Or for Jim Cameron. So I totally got it, you know? If I was Schwarzenegger, I'd want to be one of the stars of a film or nothing.
''I even said to him, 'If you're in this one, we would open it up for the sequel, because now you're back in the franchise.' So you know, if there's another movie, there's no reason why he couldn't be either in it, or the star of it, or whatever someone decides at a future date.''
Recently, 'The Predator's producer John Davis claimed there were plans for a further two sequels already, which could see Arnold return to the iconic role and face off against the unstoppable killer alien.
'The Predator' is the fourth instalment in the franchise, and stars Boyd Holbrook, Trevante Rhodes, Olivia Munn, and Sterling K. Brown.