According to The Hollywood Reporter’s interview with Cassian Elwes who as we know, is the producer of Queen Of The Desert:
With Naomi Watts and Robert Pattinson dropping out of Werner Herzog’s Gertrude Bell biopic Queen of the Desert, is the project dead?
It’s been in casting hell, but we feel like we are coming out of it now. I think we’re close to making an announcement.
A bit sad, but looking on the bright side, which I always love to do, Rob doesn’t have to be in a movie with James Franco (HUGE plus) AND Rob has & will have so many other AMAZING projects, (Life for example) coming up.  See, it’s better when you look on the bright side  We’ll of course keep you updated.
Updated: And this from @cassianelwes

Maria: This is just cruel. Not only is Franco involved now Kidman is in talks *CRIES – Karma is getting me good and proper”. According to Deadline:
EXCLUSIVE: Looks like director Werner Herzog is going to get a new Queen Of The Desert. I’m hearing that Naomi Watts is exiting the film about the early 20th Century explorer Gertrude Bell, and that Nicole Kidman is in talks to take the plum role.
This follows a switch of the male leads earlier this year, when Jude Law departed and James Franco replaced him. Robert Pattinson also stars.”
Posted on September 08, 2013
NGL not having to sit through a Franco film is good for me. Also I’m not a fan of Naomi’s much either. I’ve said it before she’s Nicole Kidman v2.
Still – it just means Rob’s free to do other projects. I know there will be a lot of people disappointed in not seeing Rob play TE Lawrence, but I’m sure there’s something in the pipeline we are yet to hear about that has Rob pulling out.
Posted on September 08, 2013
Yes @Maria have to agree with you on that. Kidman watts and Franco cant act their way out of a paper bag in my opinion and as you say we are yet to hear what other roles rob has in the pipeline
Thanks for the update Michelle
Posted on September 08, 2013
Couldn’t agree more Maria & Cindy, not a fan of any of them. It is most definitely a win/win for Rob. There is something better for him & I cannot wait to hear what further brilliance he has in store for us
Posted on September 08, 2013
I like Naomi but Franco does nothing for me. I would have loved to see Rob play Lawrence, however that is the way things work, or don’t work, in the business. You win some and loose some. and Rob definitely has more wins than losses on his ledger.
Posted on September 08, 2013
I couldn’t agree more with you all and Rob has plenty to keep him going strong at the moment. The possibilities are with no limits and I trust there would be good reason to back out of something like this.
Posted on September 08, 2013
I’m so filled with DiorRob love at the moment that NO news could get me down off this high I’m on …… *just please please don’t make me wait too log for Mission Blacklist*
Posted on September 08, 2013
oops, ‘long’.
And since I’m here again ~ *waves to Georges*
Posted on September 08, 2013
My biggest excitement about this project was that Rob would be working with Werner Herzog, so I’m bummed a bit for that reason. BUT if this doesn’t happen I firmly believe there’ll be other opportunities
The casting all sounds crazy to be honest….I would LOVE Emily Blunt to take the role of Gertrude….get Jude and Rob back in. Dream cast hehehe
Thanks for the updates, interesting times for sure….Rob will be busy busy busy and I’m sure there are more new announcements in the pipeline
Posted on September 08, 2013
I’ll take Jules’ lead and keep in mind Rob is chasing great directors
Posted on September 08, 2013
I think if I hadn’t heard of Rob’s involvement in the new Anton Corbjin film recently, I would have cried buckets at this news. I really really REALLY wanted to see him play Lawrence. Well, OK, maybe I will cry a little. I have no problem with Ms Kidman or Ms Watts, or anyone else the director wanted to cast. If the chosen actor sucks in the role, then the fault should fall squarely on the shoulders of the director. Like Jules, I’m also bummed at Rob missing out on working with Hertzog. That would have been awesome but, alas! it wasn’t to be. Thanks for letting us know, Michelle.
Posted on September 09, 2013
Oooooh Jules love the way you think! Dream cast!
But…..we all know Rob will have more amazing things around the corner regardless