An online game featuring popular Disney characters will be launched in China next year, under an agreement between the US media giant and a local games company.

Disney and local partner Shanda Interactive Entertainment said that the game is designed to appeal to a broader audience than existing online games, such as female gamers. 

Shanda will develop, distribute and operate an "online casual game based on the magical worlds of Disney and featuring some of Disney's most popular animated characters".

The two companies did not say which characters would feature in the game.

Although the terms of the deal were not revealed, the announcement appears to be positive news for Shanda, one of China's oldest online gaming firms, which has been struggling to adjust to increasing competition.

Shanda built its early popularity, including a Nasdaq IPO, on the 'hack-and-slash' multiplayer online fantasy game Legend of Mir.

The company has been trying recently to shift its focus to a new business based on a home content delivery channel, but without much success.

"We believe that the addition of Disney's wholesome content will further broaden our user demographic, thus making a significant contribution to the implementation of our home strategy," said Shanda chairman and chief executive Tianqiao Chen.