Platinum Dunes partners Michael Bay, Brad Fuller and Andrew Form have been set by New Line to re-launch Freddy Krueger, the iconic psycho who haunts the subconscious dreams of teenagers and kills them in their sleep.

The trio will create a new franchise based on "A Nightmare on Elm Street," the 1984 Wes Craven film.

Originally played by Robert Englund, Krueger haunted nine films and two TV series, and was New Line's most lucrative franchise until "The Lord of the Rings."

The deal comes as Bay, Fuller and Form ready for an April start for "Friday the 13th," a New Line re-launch of another iconic baddie, Jason Voorhees. Marcus Nispel will direct a script by Damian Shannon and Mark Swift ("Freddy Vs. Jason").

Both franchises will be given a complete overhaul, something that Platinum Dunes provided in the Nispel-directed "The Texas Chainsaw Massacre." New Line won't hire a writer on "Nightmare" until the writer's strike ends.

Platinum Dunes is busy. At Rogue Pictures, the producers are prepping an untitled David Goyer-directed exorcism thriller which has "Cloverfield" star Odette Yustman set to star, and a "Near Dark" remake that will be directed by Samuel Bayer. Bay, Fuller and Form are also developing a Universal remake of Alfred Hitchcock's "The Birds," with Martin Campbell directing Naomi Watts.

-Bloody Disgusting-