In 1994, director James Cameron wrote an 80-page scriptment for Avatar. In August 1996, he announced that after completing Titanic, he would film Avatar, which would make use of synthetic, or computer-generated, actors. The project would cost $100 million and involve at least six actors in leading roles "who appear to be real but do not exist in the physical world". Visual effects house Digital Domain, with whom Cameron has a partnership, joined the project, which was supposed to begin production in the summer of 1997 for a 1999 release. However, Cameron felt that the technology had not caught up with the story and vision that he intended to tell.
In February 2006, Cameron revealed that his film Project 880 was "a retooled version of Avatar", a film that he had tried to make years earlier, citing the technological advances in the creation of the computer-generated characters Gollum, King Kong, and Davy Jones. Cameron had chosen Avatar over his project Battle Angel after completing a five-day camera test in the previous year.
Reference : http://www.imdb.com/title/tt0499549/
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