It said in a statement that the new production continues the trend of live-action re-makes of its popular properties such as Maleficent and Cinderella.
Disney’s latest re-make, The Jungle Book, was helmed by Iron Man director Favreau and earned $966 million worldwide.
“The Lion King” was first released in 1994 and has to date earned $968 million at the worldwide box office, making it the third highest grossing animated feature of all time.
The animated film won two Academy Awards for Best Original Song (“Can You Feel the Love Tonight”) and Best Original Score (composed by Hans Zimmer).
A stage production of 'The Lion King' debuted on Broadway in 1997.
The show received six Tony Awards and is, 19 years later, one of Broadway’s biggest hits. Versions of the stage show are performed regularly in New York, London, Tokyo, Shanghai and Madrid.
Disney is yet to announce a release date for the re-make.
A re-make of Beauty and the Beast starring Emma Watson is scheduled for release in 2017.