Publisher Square Enix has dismissed reports that its action-RPG offshoot Final Fantasy Versus XIII (PS3) is on hold, claiming that development of the game is still on track.

"Reports that development for Final Fantasy Versus XIII is on hold are false," the company said in a statement reported by Eurogamer. "The truth of the situation is that when free, some staff from the Versus team have been helping with the XIII team on development of Final Fantasy XIII."

The statement directly contradicts yesterday's report from Japanese gaming magazine Famitsu, in which Final Fantasy XIII (PS3) lead designer Tetsuya Nomura said that the team behind Versus XIII were pulled from the project to help complete FF13.

"Development for both titles is continuing as originally scheduled," added Square Enix.

Set in the same universe as Final Fantasy XIII, Versus XIII is an action-RPG featuring completely different characters and story than its main series counterpart. The games were announced at E3 2006 alongside a third title, Final Fantasy Agito XIII, in development for mobile phones.

The team behind Square Enix's action-RPG offshoot Final Fantasy Versus XIII (PS3) has been pulled off the project to aid in the completion of the main series installment Final Fantasy XIII (PS3), Japanese gaming magazine Famitsu reports.

Going by a translation from gaming forum NeoGAF, Versus XIII will remain on hold until Final Fantasy XIII has wrapped. Both titles have suffered several delays since their announcement, and a firm release date has not yet been specified.

The latest edition of Square Enix's flagship RPG series, FF13 was unveiled at E3 2006 alongside Versus XIII and a third game, Final Fantasy Agito XIII, for mobile phones. The titles have yet to be demonstrated in playable form at any conferences.