Walt Disney are creating there own digital animation studio in preparation of going ahead with
Toy Story 3 without original animation company Pixar, according to the Hollywood Reporter.
Disney have the rights to make the sequels, but have previously not done so due to Pixar CEO Steve Jobs and executive VP John Lasseter not wanting to make one. They also wanted to gained control of the characters.
But with Pixar announcing earlier this year that it would end its distribution relationship with Disney following the 2005 release of the Lasseter-directed
Cars, Disney CEO Michael Eisner and studio head Dick Cook have signaled their determination to bring Woody, Buzz Lightyear and the gang back to the big screen.