The deal is a global licensing agreement to develop construction toys based on the new boys action series, Generator Rex.
The global partnership marks the first time the two companies have partnered on product development, and will bring a full line of toys to international markets through a three-year agreement.
The toy line is scheduled to launch in the construction toy aisles in the US in autumn 2011, and will roll out in additional territories thereafter.
"There is a tremendous amount of excitement and momentum surrounding Generator Rex and the addition of Mega Brands to our consumer products offering presents a great opportunity for the brand from a global perspective," said Christina Miller, senior vice president, CNE.
"Construction toys are such a crucial element of how boys play and we're excited to work closely with Mega Brands to bring Rex's world and abilities to life for our fans."
"We're very excited to have this exclusive opportunity to partner with Cartoon Network Enterprises and create the first construction toy line for their newest action series, Generator Rex," said Vic Bertrand, Chief Innovation Officer of Mega Brands.
"We look forward to bringing Rex and his powers to life through Mega Bloks and offering fans an action-packed building adventure."
Generator Rex is created by Man of Action (creators of the Ben 10 franchise) and follows Rex, a 15-year-old typical teenager with abnormal powers - including the ability to make his fists the size of boulders, sprout a jet pack out of his back and turn his legs into a lightning-fast motorcycle. He uses his superhuman abilities to help fight mutant creatures known as E.V.Os (Exponentially Variegated Organisms).