Hollywood horror icon FREDDY KRUEGER is set to return - and will take on Halloween killer Michael Myers in a new movie.

Screenwriters are working on a sequel to 2003's Freddy Vs Jason and a prequel to the long-running A Nightmare On Elm Street horror franchise.

Krueger actor ROBERT ENGLUND says, ""New Line Cinema has commissioned two scripts. One is FREDDY VS JASON AND MICHAEL MYERS, or FREDDY VS MICHAEL MYERS, I'm not quite sure how that works.

"The other one is a prequel; apparently it's not that prequel script that's been floating around for several years, it's something new. They will select one of those two (projects)."