Avatar is the story of an ex-Marine who finds himself thrust into hostilities on an alien planet filled with exotic life forms.
As a human mind in an alien body, the soldier finds himself torn between two worlds in a desperate fight for his own survival and that of the indigenous people.
Yves Guillemot, chief executive at Ubisoft, pledged that the company's creative teams will recreate "Cameron's high definition 3D environment in a compelling game for film and game fans".
Cameron, director of blockbusters including Terminator and Titanic, added: "We have created a world rich in character, detail, conflict and cultural depth.
"Avatar has the raw material for a game that the more demanding gamers of today will want to get their hands on, one that is rich in visuals and ideas, and challenging in play."
The movie and the game will incorporate new CGI technologies to transform the environments and characters into photorealistic 3D images.
The game is expected to be released in conjunction with the movie's planned opening in May 2009.
Wikileaks Vault 7 suspect Joshua Schulte fingered by FBI after re-using smartphone passwords on his PCs
Joshua Schulte indicted on 13 counts relating to Vault 7 leaks and trading in images of child abuse
Alexa for Hospitality will link with existing systems so guests can order room service and control the air con
Massive volcanic eruptions could have warmed Mars' surface sufficiently for oceans to form
Examination of fruit flies' brains generated more than one billion data points for scientists to analyse