BBC Worldwide has renewed its contract with Tomy as the master toy licensee across Europe for the Teletubbies brand.
Tomy has held the master toy licence in the UK since 2001 - and in France since 1998 - and has now committed to develop new products for the next three years.
The company has enjoyed recent success with Dance With Me Teletubby, which dances and plays music. Last year it was voted as one of Hamleys top toys for Christmas and listed by Dream Toys as a top 12 pre-school toy.
This year, Tomy will roll out Teletubby Bob Along Bath Toys and Po's Matching Game among other products.
"The Teletubbies have a unique and enduring appeal for pre-school children, but with a constantly renewing audience base it's paramount that we retain a creative edge," explained Anna Hewitt, head of international licensing at BBC Worldwide.
"Tomy is the ideal partner to ensure we continue to deliver on innovation for this age group and we're delighted to be continuing our long standing relationship with them."
Joanne Gray, European head of business at Tomy, added: "Tomy has exciting plans for the brand, developing more new and innovative toys which will expand the range across categories and bring joy to new and existing Teletubbies fans across Europe."