David Lynch has suggested that he has made his last film as he prepares for the return of Twin Peaks to television screens.

The director and producer lamented the state of the film industry and said the wrong films were finding success.

He told The Sydney Morning Herald: "So many films were not doing well at the box office even though they might have been great films and the things that were doing well at the box office weren't the things that I would want to do."

When asked if that was it for him and feature films, Lynch, whose last film was 2006's Inland Empire, replied: "Yes it is."

The 71-year-old made the comments ahead of the return of Twin Peaks later this month, more than 25 years after the second season of the surreal mystery ended.

Lynch, who directed The Elephant Man, starring John Hurt, has refused to give anything away about about its return.

He previously said: "It's 25 years later, some things change, some things remain the same."

What is known is that much of the previous cast are retuning, including Kyle MacLachlan as FBI Special Agent Dale Cooper.

Naomi Watts is a newcomer to the series as is three-time Golden Globe winner Laura Dern.