The plan has been put into action after Lucas abandoned the planned Lucas Museum of Narrative Art, which was set to open in Chicago, after a battle with conservationists.
The Lucas Museum will house the film-maker's personal collection that includes 10 000 paintings and illustrations by American artists Norman Rockwell and N.C. Wyeth, illustration artist Robert Crumb as well as European artists Edgar Degas and Pierre-Auguste Renoir.
Both Michael Govan, the director of the Los Angeles County Museum of Art, and Kerry Brougher, the director of the Academy Museum of Motion Pictures supported the Lucas Museum during a meeting with the Los Angeles county board of supervisors last November.
Lucas will donate around $1 billion to the museum.