Oscar-winning British director Sam Mendes is in charge of the new musical, which should hit the stage in 2006.

Shrek is one of the most successful animated films of all time and a sequel released earlier this year became the biggest animated film of all time.

Other animated films Beauty and the Beast and the Lion King have been made into hugely successful musicals too.

The director of the musical Jason Moore said it would be a big challenge to take an animated film and turn it into something for the stage.