According to Bloomberg, the project had been in development for two years. Several employees will be laid off as part of the cancellation, its sources said.
Eidos Montreal will instead focus on an original franchise, it’s claimed.
It was reported later that year that a new Deus Ex game was in very early development at the Canadian studio.
Eidos Montreal previously released Deus Ex: Human Revolution (2011) and Mankind Divided (2016), before moving on to 2021’s acclaimed Guardians of the Galaxy.
Embracer has become one of the biggest examples of the uncertainty currently troubling the games industry.
The company announced last June that it was implementing a restructuring programme which would involve the closure of studios, layoffs and the cancellation of some projects.
Last month Embracer made layoffs at New World Interactive, 3D Realms and Slipgate Ironworks, and this month “a sizable portion” of Gearbox support studio Lost Boys Interactive was also laid off.