Dusk falls over Bourbon Street in the French Quarter of New Orleans [AFP]

Walt Disney's latest animated fairy tale will be a musical set in New Orleans titled "The Frog Princess", the entertainment giants announced on Thursday.

Disney said in a statement that the film's hero, Maddy, would be a young African-American girl living amid the faded grandeur of the city's fabled French quarter.

The film was announced by studio chief Dick Cook and Pixar boss John Lasseter on the sidelines of Disney's annual shareholders meeting, held in New Orleans 18 months after the devastation of Hurricane Katrina.

Composer and singer Randy Newman has been signed to provide music for the film, which promised an "unforgettable tale of love, enchantment and discovery with a soulful singing crocodile, voodoo spells and Cajun charm," Disney said.

The film will be made by John Musker and Ron Clements, who teamed successfully for the "The Little Mermaid" and "Aladdin."