Could the Newt movie project be reactivated one day?

http://pixar.wikia.com/Newt

Sadly, this is a movie that never saw the light of day, because Pixar thought they would be unable to compete with two similarly themed movies and they shutdown the project.

But I am wondering about the possibility of the project being reactivated one day and the movie brought to completion.

At the time the announcement was made, Pixar had been working on this movie for 3 years.
4 years is the average time to make a Pixar movie, so that would mean that the movie was 75% complete.

I'm assuming this means Pixar had gone to production stage and were animating the movie.
Since this is the most time consuming task in making a Pixar movie, it is highly likely they had started to do this when the project was cancelled.

It is possible that Pixar archived all the production material (concept art, script treatments etc) and the data files involved.
Since Pixar likes to write new software for each new movie and they reuse the software for future movies, it's highly unlikely they just discarded the files involved completely.
Especially as they would have definitely reached the simulation stage (that's where all the technical problems in rendering the characters have been solved) and they would definitely want to keep that software for reuse.

If Pixar archived the material, where would they store it?
For the amount of data storage required, Pixar would need a dedicated backup server and quite a sizeable one.

Not Likely, we can tell that their decision to cancel newt because of possible conflicts with another movie is justified based on the screencaps of a Newt Character in Rio 2.
because of Rio 2,if Pixar ever were to revive Newt, they would just get into trouble with Blue Sky Studios like they said. And because of it, Newt just couldn't be revived.

Actually, one of the movies was Rio 1, not the sequel.
It's particularly bad form to include a Newt like character in a movie series that was responsible for the cancellation.

And copyright law doesn't work like that.
Newt precedes Rio, so it has the stronger claim in a court of law.
In point of the fact, the CGI models for Newt and his girlfriend, along with an assortment of concept art were released publicly, so everyone knows what they look like. And therefore, it's easy to copy them with that material available.
Blue Sky Studios would actually be the one who would lose that case if it came to a legal dispute.

If anything, Pixar could make up a new story with the characters and revive the film. But the thing is that when movie (and video games) are cancelled, they are never revived, worked on or talked about in detail.