Abrams is the film's director and Kasdan penned the studio's classics "Raiders of the Lost Ark," "Star Wars: Episode V: The Empire Strikes Back" and "Star Wars: Episode VI: Return of the Jedi."
"I am very excited about the story we have in place," Kathleen Kennedy, Lucasfilm's president, said in a statement to the New York Times. "Michael Arndt has done a terrific job bringing us to this point."
No reason was given for Arndt's departure from the project. His film credits include "Toy Story 3" and "Little Miss Sunshine."
The next installment in the space saga is to begin filming in the spring for a planned 2015 release, the Times said.