Lionsgate and Twisted Pictures will start production on Saw IIIwill in Toronto on May 8and are expected to wrap in June.

Lionsgate International president Nick Meyer and LionsgateInternational Sales president Stephanie Denton will commence sales at Cannes.

As previously reported, the third instalment in the lucrativehorror franchise is set to open this Halloween on Oct 27.

Darren Lynn Bousman is directing based on a story from Saw creators Leigh Whannell and James Wanand a screenplay by Whannell.

Twisted Pictures' Mark Burg and Oren Koules reprise their roles asproducers and their late partner Greg Hoffman, to whom the film is dedicated,also gets a producer credit. Hoffman died suddenly last November.

Whannell and Wan will serve as executive producers alongside DanHeffner and Lionsgate's president of acquisitions and co-productions PeterBlock and senior vice president of acquisitions and co-productions JasonConstantine, who are overseeing for the studio.

'We're tickled red about bringing a new cycle of Jigsaw'sbloody inventions to horror fans all over the world,' Block said.'Darren, Leigh and James are cooking up a twisted gem that promises to bethe most nightmarish Saw yet.'

Tobin Bell returns as the maniacal player of games Jigsaw. ShawneeSmith, Bahar Soomekh, Angus MacFadyen and Dina Meyer round out the cast.

The Saw franchise launched over Halloween 2004 and has gone on togross approximately $250m worldwide.