East Coast Nursery will produce a line of Tiny Tatty Teddy nursery products to launch next year.
The company has signed a deal with Me To You brand creator Carte Blanche for the range, which will hit retail in autumn 2013. It will feature the iconic bear with the blue nose.
"We are delighted to be working with Carte Blanche on this licence opportunity," said East Coast Nursery CEO Eric White.
"Tiny Tatty Teddy has a huge and very loyal fanbase. The brand is well known and loved across the gift, clothing and toy categories and we see a fantastic opportunity to create a nursery range with an instantly recognisable character that creates an emotional connection with mums."
Want to receive up to the minute toy industry news straight to your inbox? Click here to sign up for the free ToyNews Daily Digest and Newsflash services. You can also follow ToyNews on Twitter and Facebook.