The media and entertainment giant's stock added to gains following the news.
"Given Bob Iger's outstanding leadership, his record of success in a changing media landscape, and his clear strategic vision for Disney's future, it is obvious that the Company and its shareholders will be best served by his continued leadership as the Board conducts the robust process of identifying a successor and ensuring a smooth transition," Orin C. Smith, independent lead director of the Disney Board said in a press release on Thursday.
Iger has served as the CEO of Disney for 11 years.
"Leading this great company is a tremendous privilege, and I am honored to have been asked to continue serving as CEO," Iger said in the press release. "I am confident that Disney's best days are still ahead, and I look forward to continuing to build on our proven strategy for growth while working with the Board to identify a successor as CEO and ensure a successful transition."