Jakks Pacific Inc. said Monday it has entered into an agreement with Walt Disney Co.’s consumer product division to develop a new line of Hannah Montana and Cheetah Girls toys and dolls.

The toy line will play up fashion and music themes in Disney’s properties and will include fashion dolls, play-sets and role-play and dress-up items. The Malibu-based toy company said it plans to debut the line at the 2007 American International Toy Fair.

In midday trading Monday, shares of Jakks were up 18 cents to $21, and shares of Disney were down 34 cents to $34.01.