UPDATE: 3/19/10 10 AM PST Looks like MTV Movies Blog reached out to LucasFilm after this story ran and they gave a confirmation, of sorts, on this project. Here's the response they received from a LucasFilm rep.

"Lucasfilm Animation has many projects in development. One is for a younger audience but it's in very early development and too early for any details."
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We'll be sure to keep you posted on any new developments on this animated TV series as soon as more information comes in.

While Star Wars: The Clone Wars is still going strong on Cartoon Network, it seems that George Lucas is concocting another animated series in the Star Wars universe. IESB.net is reporting that George Lucas is in pre-production on a brand new animated Star Wars series that will be aimed at a much younger audience.

It was said that this new series will be aimed at pre-school and kindergarten-aged children and the working title is believed to be Squishies. It was said that a director had been brought aboard the project, but they didn't reveal who that director was.

The site reports that the new series will be based off a new line of popular toys. We'll be sure to keep you updated on any further information of this new series as soon as we have more information.