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Red Dog sequel in the works

Red Dog director Kriv Stenders has confirmed a prequel to the hit Australian movie is in the works.

Stenders told Sky News Australia that Red Dog would be a puppy in the new film.

"Dan Taplitz, who wrote the original, pitched me a really, really great idea," Stenders said on the red carpet at the 22nd Tropfest Film Festival.

"I don't want to give too much away but it's a prequel. Red Dog is a puppy."

Based on a true story, Red Dog was a smash hit in 2011, earning more than $21 million at the Australian box office and taking home the inaugural AACTA Award for best film.

Its canine star, Koko, an Australian Kelpie, died in Perth from congestive heart disease in December 2012.