This marks the first time in its 40-year history that New Line will release an animated feature.

Ilion set up a studio in Spain five years ago where it developed technology in-house for "Planet 51," the trade paper said.

The movie is in production and slated to be completed in March 2009.

The filmmakers are looking for stars to lend their voices to characters in the film, which New Line plans to release in 2009.

A "Planet 51" video game is also in the works at Pyro Studios.