The movie mogul founded Lucasfilm in 1971 and since then he has released a total of seven Star Wars films under the banner.
But, after setting his eye on retirement, Lucas has agreed to hand over the firm to chiefs at Disney, who will carry on the epic space franchise's legacy by releasing Star Wars: Episode 7 in 2015.
A statement from Lucas reads, "For the past 35 years, one of my greatest pleasures has been to see Star Wars passed from one generation to the next. It's now time for me to pass Star Wars on to a new generation of filmmakers.
"I've always believed that Star Wars could live beyond me, and I thought it was important to set up the transition during my lifetime.
"I'm confident that with Lucasfilm... having a new home within the Disney organization, Star Wars will certainly live on and flourish for many generations to come. "
Lucas will still play a role in the making of the next Star Wars film - he has signed on as the movie's creative consultant.
The Lucasfilm deal is one of the largest ever made by Disney and tops the $3.96 billion executives paid for Marvel in 2009.