The news comes as production on season three is set to end this week. Filming on season four is slated to begin in early 2010, with the Stewart family – Miley, dad Robbie (Billy Ray Cyrus) and brother Jackson ( Jason Earles) – struggling to say goodbye to their beachfront Malibu home.
"Miley and the producers have proposed a change of setting for Season Four that will provide the catalyst for wonderful new characters and further expand the storytelling opportunities," Disney Channel president Gary Marsh said.
"Hannah Montana has become one of the most iconic series in television history," he added. The show draws an average of 4.4 million viewers per episode.
In an earlier interview with Access Hollywood, Miley admitted that although she wouldn't wear her trademark "Hannah" wig forever, she was enjoying it while it lasts.