Woody will be reunited with Bo Peep in a love story in Toy Story 4.
They were romantically linked in the first film in 1995 but this time their relationship will be a big part of the plot.
Speaking at Disney’s D23 conference, Disney Chief Creative Officer John Lasseter confirmed Woody, voiced by Tom Hanks, would be at the centre of a love story.
“It’s something we’ve never done with Toy Story before,” he said.
“At Pixar and at Disney we only do a sequel if we have come up with something that’s as good or better than the original. That’s our rule.”
“We don’t do things just to print money. It’s about great stories, that’s what we do.”
Pixar previously announced that Toy Story 4, which is set to be released in June 2017, would be a standalone film separate from the trilogy.
Lasseter, who is co-directing the film, said the story is very emotional and personal and has been inspired by his own wife.
Finding Dory, a sequel to Finding Nemo, as well as follow-ups to Frozen and The Incredibles are also in development at the moment.
There was also news on Pixar’s delayed release Good Dinosaur – which will come out in November having been pushed back by a year.
Disney also announced a Jack and the Beanstalk adaptation called Gigantic, which will feature a 60ft (18m) tall girl who Jack meets when he climbs up the beanstalk and songs written by the team behind Frozen’s Let It Go.