Mandalay Entertainment Group is said to have approached the 72-year-old actor in 1999 about a role in a thriller called End Game.

We are confident in our position that the claims are frivolous and without any merit

Mandalay spokesman

He agreed to produce the film and star as a CIA agent.

The actor was encouraged to spend "considerable time, effort and money" in developing the project, according to legal documents filed in the Los Angeles Superior Court.

But when he began meeting directors in the hope of beginning production earlier this year "Mandalay and Guber suddenly refused to cooperate... and simply cut off all communications," the lawsuit claims.

Sir Sean says the firm strung him along for two years "in an attempt to hold themselves out to the entertainment industry as a viable production company. Mandalay, however, was nothing more than a house of cards".

He is seeking $11m (�7m) in compensatory damages plus unspecified compensation for "lost opportunities".

'Misled'

Sir Sean claims Mandalay and its chairman, Peter Guber, misled him about their ability to finance the project.

But Mandalay dismissed the actor's legal case as "frivolous".

He became famous in the role of James Bond

"We are confident in our position that the claims are frivolous and without any merit," a spokesman for Mandalay told industry magazine Variety.

Guber has produced several box office hits, including Rain Man, Batman, and Flashdance.

Sir Sean achieved fame in the role of 007 master spy James Bond.

His film career, which spans more than 30 years, includes Dr No, Goldfinger, The Name of the Rose, First Knight, Hunt for Red October and Highlander.