Lucasfilm president Kathleen Kennedy is stepping down after 14 years at the helm of the studio that makes Star Wars, one of the highest-grossing Hollywood franchises in history.

Kennedy, who was picked by Star Wars creator George Lucas to lead the company, will become a full-time producer, the studio said on Thursday.

Best known for steering the reboot of the science-fiction series, Kennedy oversaw hits like The Force Awakens but she was also behind the franchise's first ever box office flop - Solo: A Star Wars Story.

Dave Filoni - who has worked on many of the studio's animated shows - will take the role of president and chief creative officer, working alongside co-president Lynwen Brennan.

Filoni credited Kennedy for overseeing the "greatest expansion" in Star Wars storytelling.