Firm will continue as master toy licensee for the brand in the US and Europe.
Under the deal with Saban Brands, a new subsidiary of Saban Capital Group, Bandai America will continue developing action figures, play-sets, role play items and more for the Power Rangers brand worldwide.
The firm has held the licence for nearly 20 years.
The announcement comes shortly after the news that the worldwide brand rights have returned to original franchise developer, Haim Saban from Disney.
In addition, Bandai Europe will also continue to produce and distribute the Power Rangers toy line across the continent.
The toy lines will complement the re-launched Power Rangers TV series with new episodes set to air on Nickelodeon in 2011.
Masayuki Matsuo, chairman and chief executive officer of Bandai America said: “Bandai America is committed to developing innovative toys that will reignite the Power Rangers brand as it embarks upon its third decade of pop culture dominance.
“The renewal of the Bandai and Saban collaboration will spark new fans and bolster longtime fan loyalty by delivering quality entertainment and create imaginative, modern play experiences.”
Elie Dekel, managing director and head of Saban Brands, added: “It is only natural that as Power Rangers return to its original home with Saban, the toy license remains with Bandai America, creators of inspired, inventive toys for the brand since its inception.
“We are confident this reignited partnership will produce continued success and introduce the Power Rangers to a new generation of kids.”