They will create the virtual image of the late singer for a range of entertainment projects including live shows and appearances for TV and movie, reported Ace Showbiz.
The project will help continue the growth of Presley's rich legacy all over the world.
"This is a new and exciting way to bring the magic and music of Elvis Presley to life. His lifelong fans will be thrilled all over again and new audiences will discover the electric experience of Elvis the performer," said Jack Soden, President and CEO of Elvis Presley Enterprises.
Digital Domain was founded by "Avatar" filmmaker James Cameron in 1993. They created "synthetic human beings" for films such as "The Curious Case of Benjamin Button", "Tron: Legacy" and "X-Men: First Class". Their work in the Brad Pitt-starring movie was awarded an Oscar.
The company has already begun work on the virtual Elvis Presley likenesses and will announce when and where audiences can expect to see the first virtual performances.
