The stars were set to reprise their roles as bumbling duo Lloyd Christmas and Harry Dunne in the follow-up, which would follow the pair as they hit the road to find Dunne's illegitimate daughter.
The 1994 movie's original writers and directors, Bobby and Peter Farrelly, were signed on for the sequel, which has been in the works for years at New Line Cinema, a subsidiary of Warner Bros.
However, interest in the project waned after Carrey's latest release, 'The Incredible Burt Wonderstone', bombed at the box office, according to The Hollywood Reporter.
The 1994 movie was followed by a sequel in 2003, 'Dumb And Dumberer: When Harry Met Lloyd', but the film did not feature either of the original stars.