"John created 'Toy Story' and directed its first two films and it's great to have him back directing one of our most valuable properties," Disney chief executive Bob Iger said on an earnings call.
Iger called 2010's "Toy Story 3" a "tremendous success" with more than $1 billion at the global box office and $10 billion in retail sales.
He said that demonstrated that "these wonderful characters are clearly just as relevant and beloved as ever."
"Toy Story" was the first feature film made by Pixar Animation Studios, in 1995, and gave the famous animated characters Woody, the toy cowboy, and space ranger Buzz Lightyear a prominent place in pop culture.
The first installment made $362 million at the global box office, while "Toy Story 2" brought in $485 million.
Disney bought Pixar in 2006 in a deal worth $7.4 billion.