"It's not gonna happen and that breaks my greasy heart," del Toro is quoted as saying by entertainment journalist Matt Hackney.
Silent Hills' cancellation is likely tied to Hideo Kojima's recently-announced plans to leave Konami. Kojima, the planned director of Silent Hills, will leave the company after Metal Gear Solid 5: The Phantom Pain is released in September.
At the time of the announcement, Konami assured fans that Metal Gear would continue as a franchise without Konjima, but no such assurances were given about the Silent Hill franchise.
This has been a rough week for del Toro; his Pacific Rim 2 was one of a number of projects Universal and Legendary delayed earlier in the week.