It's been reported that Ridley Scott is currently in negotiations with Disney to direct  "The Merlin Saga". He is also said to be in talks to produce the film through his company Scott Free, along with Gil Netter.

"The Merlin Saga" will be based on the books by T.A. Barron. They follow a young Merlin who eventually becomes mentor to King Arthur. The saga will be comprised of two films.  

In addition to the saga films, the studio is also working on a live-action "Sword in the Stone". Scott is said to be in talks about this project as well.