The singer bought the rights to adapt Richard DiLello's 1973 book, The Longest Cocktail Party, for the big screen with his film company, In 1 Productions.
The book details DiLello's tenure at the Beatles' Apple company, and covers the band's from 1968 to its split in 1970, and Gallagher reportedly brought 24 Hour Party People director Michael Winterbottom on board to helm the project.
The film has been in the works for more than five years, but has hit a series of roadblocks, and Winterbottom is no longer onboard. A new report now suggests Gallagher has also quit work on the troubled movie, and his film company has been shut down.
"Liam invested heavily in the film when he bought the rights and was intent on making it happen," a source tells Britain's The Sun newspaper. "He commissioned someone to write it, started a production company and got a top director on board in the form of Michael. After that, things started to go downhill. The script was all wrong and they couldn't get access to The Beatles' back catalogue. Now Liam has backed out of the project.
"He has nothing to do with it anymore and his colleague Chris Jonns has taken on the rights with a view to getting it off the ground one day without him.."
A representative for Winterbottom's Revolution Productions film company adds, "Revolution are no longer involved in this project."
Winterbottom previously declared he hoped Gallagher would tackle an acting role in the film, declaring, "Liam will have a part in it. He's all over it. It's about the mad chaos of Apple, so it's not dissimilar to 24 Hour Party People... I've met him (Gallagher) a few times. He seems like a nice guy."
Gallagher appeared to comment on the report in a cryptic post on Twitter.com on Wednesday (27Jan16), writing, "I see the scum r (are) making a meal of it again give it up your gonna make yourselfs (sic) ill LG..."