The news was confirmed by Star Wars producer, Rick McCallum, when he was given an Empire award this week in London.
Lucas has now handed over the project to his partner, director Steven Spielberg, who will put his final touches on the script. McCallum said, "(George has) just finished the Indiana Jones script, and Steven’s having that rewritten and a few things done."
Filming for the fourth installment is set to begin next year. Although the directors had not been satisfied with previous versions of the script, Indiana Jones 4 should still make its way to theatres by May, 2007.