The Star Wars creator, who had previously suggested that he was going to stop making movies, revealed to Metro that he will instead focus on making films more akin to his earlier indie movies THX 1138 and American Graffiti.
"I keep telling everyone I'm sort of retiring," he said. "But I'm really going to go back to where I started, which is the more avant-garde filmmaking.
"I've made enough money so that I can finance it all myself. I don't have to worry or answer to anybody and I can just do whatever I want."
Lucas's first Star Wars prequel The Phantom Menace will be re-released in 3D cinemas tomorrow (February 9). Discussing the reasons for converting the film to 3D, Lucas explained: "Moving from 2D to 3D is like the difference between watching a film in black and white and watching a film in colour.
"It works in black and white but it works better in colour."
Watch George Lucas discuss the Star Wars saga below:
In conversation with George Lucas - part 1:
In conversation with George Lucas - part 2: