The plot would feature Nemo's long lost twin brother named Remy, and Marlin getting captured so Nemo, Remy, and Dory have to save him.
In 2005, after disagreements between Disney's Michael Eisner and Pixar's Steve Jobs over the distribution of Pixar's films, Disney announced that they would be creating a new animation studio, Circle 7 Animation, to make sequels to the seven Disney-owned, Pixar films (which consisted of the films released between 1995 and 2006).
The studio had put Toy Story 3 and Monsters, Inc. 2 in development, and had also hired screenwriter, Laurie Craig, to write a draft for Finding Nemo 2. Although it never went into production, a script for the Circle 7 version was uploaded to the official Raindance Film Festival website.
However, in January 2006, when new Disney CEO, Robert Iger decided that Disney was better off with Pixar than they were without them he bought the latter company for 7.4 billion dollars and subsequently closed down Circle 7 Animation, ending production on all their films.