Disney chair and CEO Bob Iger has extended his contract until the end of 2018, quashing rumours he was to step down from his current role as the company’s leader in 2016.

Iger, who has headed The Walt Disney Company since 2005, is expected to name a COO in 2015 to assist and eventually succeed Iger. The new appointee will be the company's first COO since Iger vacated the role in 2005 to take the top spot from Michael Eisner.

The top two candidates thought to be in line for the position are Disney Parks chair Tom Staggs and former Disney Parks chair Jay Rasulo – now chief financial officer for the company.

Disney stock has increased fourfold in the nine years Iger has held the position, with the company acquiring the likes of Pixar, Marvel and Lucasfilm into both the Disney film brand and its parks and resorts.