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"On January 8, 2007, it was announced that Shyamalan would write, direct and produce the live-action adaptation of Avatar: The Last Airbender, an animated TV series on the children's cable channel Nickelodeon, a series influenced by Asian art, mythology and various martial-arts fighting styles. The movie will be produced for Paramount Pictures' MTV Films and Nick Movies. The trade paper Variety later reported Shyamalan would film Avatar after The Happening.

According to an interview with the co-creators in SFX Magazine, Shyamalan came across Avatar when his daughter wanted to be Katara for Halloween. Intrigued, Shyamalan researched and watched the series with his family. "Watching Avatar has become a family event in my house ... so we are looking forward to how the story develops in season three", said M. Night Shyamalan. "Once I saw the amazing world that Mike and Bryan created, I knew it would make a great feature film."

According to the Philadelphia Inquirer, M. Night will begin filming Avatar: The Last Airbender in May 2009; he will need four or five huge soundstages in the Philadelphia area to produce this film. On April 15, 2008, Paramount and Nickelodeon announced the official title for the film will be The Last Airbender. Also announced was the release date, July 2, 2010. The Last Airbender is currently the only movie announced for the July 4th holiday weekend of that year."

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