The five-year deal will see Vivid developing a line of products including plush, play-sets, role play, arts and crafts, puzzles and games, for distribution in the UK, France, Benelux and Germany.
The company also has global manufacturing rights (excluding the US), with products expected to be on shelf in the UK in autumn/winter 2011.
Vivid is also the master toy licensee for Chapman's other two pre-school shows, Fifi and the Flowertots and Roary the Racing Car.
"We are confident that Vivid will produce a compelling and distinctive toy line for Little Charley Bear, and displaying the same vision and brand developmen that they have shown for Fifi and Roary," said Val Fry, director of licensing at Chapman. "We are very excited to continue our partnership with them."
Emma Sherski, marketing and licensing director at Vivid, added: "We are thrilled to be partnering with Chapman again on yet another first class, creative pre-school brand which has all the magic ingredients to translate into a top selling pre-school toy line worldwide."
Little Charley Bear is commissioned by CBeebies.