Record earnings at the Chinese box-office have propelled Pacific Rim from big budget flop to potential franchise.
The Guillermo del Toro-directed film, which pits giant robots against monsters from another dimension, was lumped in with blockbuster failures such as R.I.P.D due to its poor showing at the US box-office.
It has earned US$93 million since opening in the States on July 12 - a disappointment given its US$190 million budget.
But the blockbuster made up for falling flat at home by taking in a record-breaking US$45 million in its first five days in China.
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That has boosted its overseas earnings to about US$200 million.
The film is yet to open in several big markets, including Japan, where it is expected to resonate strongly with audiences.
Its earnings are now set to exceed US$300 million at the overseas box-office and US$100 million in the US.
Those figures have convinced the film's backers Legendary Pictures/Warner Bros to think strongly about funding a sequel, Deadline reports.
Del Toro and screenwriter Travis Beacham have reportedly already begun working on a draft script for the film.