Update: Showtime have responded to Lynch's comments in a statement to The Hollywood Reporter:

"We were saddened to read David Lynch's statement today, since we believed we were working towards solutions with David and his reps on the few remaining deal points. Showtime also loves the world of Twin Peaks, and we continue to hold out hope that we can bring it back in all its glory with both of its extraordinary creators, David Lynch and Mark Frost, at its helm."

Original Story

David Lynch has shared a short statement on his Facebook account, letting people know he won't be involved in the new series of Twin Peaks:

"Dear Facebook Friends, Showtime did not pull the plug on Twin Peaks," he writes. "After 1 year and 4 months of negotiations, I left because not enough money was offered to do the script the way I felt it needed to be done. This weekend I started to call actors to let them know I would not be directing. Twin Peaks may still be very much alive at Showtime. I love the world of Twin Peaks and wish things could have worked out differently."

Although nothing has been confirmed as of yet, the show will most likely continue without Lynch's input (sadly).