From the
AVP Galaxy article:
Q: "Were you asked to do Alien 3? What happened with Alien 5? And would you consider working on the Prometheus sequels?"
A: "[Fox and I] never talked about Alien 3. I don’t remember the timing exactly, but I might have been making The Abyss at that time, also for Fox. What came up was the idea of doing Alien 5, and at one point
I pitched that I would write it and produce it, and Ridley would direct it, and we had lunch talking about this, and we were in violent agreement, then nothing happened. What happened was
Fox went ahead with Aliens Vs Predator, and I said “I really don’t recommend that, you’ll ruin the franchise, it’s like Universal doing Dracula versus the Werewolf,” and then I lost interest in doing an Alien film. But Prometheus is seen as the A-level alien, as opposed to rather, the derivative. I don’t think I have anything to offer on the Prometheus sequels, that’s Ridley’s, I think I’ll stick to the Avatar universe."
It kinda makes you hate the AVP films even more now, since it was either that or a
Scott + Cameron-created Alien 5.
Whatever, it's nothing to get mad over since it's such old news anyway. That would have been interesting, though.