The show will air on HBO and its streaming services first, and the episodes will then air on PBS nine months later, reported Us Weekly.
The deal will also provide the classic show to PBS, its home for long now, for free for the first time ever.
The iconic children's show, which has taught young kids to read and love learning since 1969, will be expanding its seasons, creating 35 episodes a year as opposed to 18 as it enters its 46th season this year.
The program is known for its educational content, and images communicated through the use of Jim Henson's Muppets, animation, short films, humour, and cultural references.
