The next horror entry from the studios who helped launch "The Blair Witch Project" will be "The Possession," a film examining the line between psychosis and demonic possession.

As part of a multipicture deal, Amber Entertainment and Haxan Films are planning to shoot "The Possession" in October, according to Variety.

"The Blair Witch Project" director Eduardo Sanchez will helm the film, working from a script he co-wrote with Jamie Nash ("Altered"). Andy Jenkins and Bob Eick will executive produce.

"The Possession" will mix the thriller and horror genres, centering on a young woman plagued by an evil presence.

Robin Cowie and Gregg Hale will produce for Haxan Films, along with Mark Ordesky and Jane Fleming for Amber Entertainment.

Propelled by a viral marketing campaign, "The Blair Witch Project" earned more than $140 million domestically in 1999 despite its meager $22,000 budget. It collected another $250 million worldwide.

The film's sequel, "Book of Shadows: Blair Witch 2," was unable to retain that momentum, however, earning just $48 million.

Afterward, Haxan Films produced two TV series, and the films "Altered" in 2006, and "Seventh Moon" in 2008.