The two-year deal, which starts in 2007 and has a renewal option, will coincide with the release of 'Shrek 3' and includes Dreamworks animators integrating the McDonald's mascot with the film's characters in commercials.
Dreamworks will be involved in other marketing activity while McDonald's will promote 'Shrek 3' and other releases in its outlets.
Jeffrey Katzenberg, DreamWorks Animation chief executive officer, said: "McDonald's is one of the greatest companies and most recognised brands anywhere in the world.
"The broad appeal of our movies, coupled with the reach of the Golden Arches, will enable us to create further excitement and anticipation for our films, for millions and millions of people worldwide."
This latest deal comes in the final year of a decade-long exclusive link up with Walt Disney, which included promotion of 'Finding Nemo', produced by Disney and Pixar Animation.
McDonald's said this latest deal with Dreamworks will be non-exclusive, leaving it free to work with other film companies, which could see the burger giant link up with Disney again.
Yesterday, McDonald's in the UK launched its latest push to counter accusations that its menu is unhealthy.
This includes a TV commercial featuring branch manager Kevin Ralph, the first time an employee has been used in advertising and a move that echoes Halifax's successful run of ads featuring its own branch manager Howard Brown.
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