The 63-year-old this month signed on to star in the upcoming film Cry Macho for a rumoured $12.5 million.
He was also in negotiations to star in a new film in the Terminator franchise.
After confessing he had a love child with a former staff member - believed to be housekeeper Mildred Baena - the actor has asked his agent at CAA to cancel his current film negotiations.
'This includes Cry Macho, the Terminator franchise and other projects under consideration. We will resume discussions when Governor Schwarzenegger decides.'
The former LA governor, who confessed to having a love child earlier this week, was set to play a down-on-his-luck horse trainer hired to kidnap his former boss’ young son from his ex-wife in Mexico in Cry Macho.
'If it works, and I think it will,' Academy Award winning producer Albert Ruddy said at the time.
'This could be a classic. There’s an emotional line to the story that really works. At the end of the movie, I’m hoping audiences will be laughing and crying at the same time.'
His estranged wife Maria Shriver and their four children are still grappling with the bombshell revelation.
His daughter Katherine is taking solace in the words of a book of uplifting sayings.
The ex-governor's oldest child Katherine, 21 retweeed the phrase: 'Everything happens for a reason, the hard part is finding out what that reason is,' which comes from a book of happy quotes called 'The Notebook of Love'.
Scandal: The actor is said to have had a love child with former housekeeper Mildred Baena, pictured here on a social networking site
Katherine's Tweet suggests she is coping with her father's sex scandal and searching for significance to his actions amidst the media frenzy.
The Notebook of Love has the mantra: 'If you surround yourself with positivity, you will force a positive outcome.'
Its website says: 'Let's face it; we all have troubles when it comes to any relationship. Good relationships can be hard to come by. But, that should never be a reason why you don't cater to them. I personally know that when dealing with any relationship you have to cater to it.'
Other Tweets form the book include: 'Sometimes God pushes us to our limits. It's because he has greater faith in us than we have in ourselves," and "I didn't say "I love you" to hear it back. I said it to make sure you knew.'
I won't be back: The 63-year-old was in negotiations to star in a new Terminator film
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