Jay Leno to step aside for Jimmy Fallon in 2014

Jay Leno says he will be leaving NBC's Tonight Show next spring, to be replaced by Jimmy Fallon.

Leno announced the move Wednesday in a news release.

NBC also confirms that the show will be moving to New York City when Fallon takes over. Saturday Night Live producer Lorne Michaels will take over as producer of the new Tonight Show.

Fallon renews contract

The move has been widely reported but not confirmed by the network until now. NBC reportedly just wrapped up negotiations with Fallon on a contract extension.

NBC did not say who will replace Fallon in his current time slot, which is one hour later than the Tonight Show.

Steve Burke, chief executive officer of NBC Universal, said the network is purposefully making the move when Leno is still at the top of the ratings, just as when Leno replaced Johnny Carson at the Tonight Show.

"Jimmy Fallon is a unique talent and this is his time," Burke said.

NBC is looking to Fallon to pull in a younger audience with his internet-friendly brand of comedy.

Takeover amid Winter Olympics

Fallon will take over in conjunction with NBC's coverage of next year's Winter Olympic games. NBC hopes for a big audience much larger than what it gets in prime time now to promote the switchover.

NBC is worried that ABC's Jimmy Kimmel will establish himself as a go-to late night performer for a younger generation if the network didn't move swiftly to install Fallon. But the move also has the potential to backfire with Leno's fans, who did not embrace Conan O'Brien when Leno was temporarily moved to prime time a few years ago.

The first effort toward making that transition smooth came on Monday night, when Leno and Fallon appeared in a comic video making fun of all the late-night rumors. It aired in between each man's show.

Leno, in a statement, offered his congratulations to Fallon.

"I hope you're as lucky as me and hold on to the job until you're the old guy," he said. "If you need me, I'll be at the garage."