CEO Bob Chapek announced during a Q2 earnings call that it would be released exclusively in cinemas for 45 days before it is shown on a streaming service, according to Variety.
Chapek said the decision was based on “recent signs of increased confidence in moviegoing.”
Shang Chi will be Disney’s first theatrical release since the 20th Century film The New Mutants.
Black Widow, which is due to be released on July 9, will be the last Marvel movie to be shown in cinemas and on Disney+ simultaneously.
Shang Chi, which is released in cinemas on September 3, sees Simu Liu take on the role of the titular Master of Kung Fu, confronting a past that he thought he left behind, with the film set to be the first MCU outing to centre on an Asian superhero.
It also stars Fala Chen as Jiang Li, Meng’er Zhang as Xialing, Florian Munteanu as Razor Fist, Ronny Chieng as Jon Jon and Michelle Yeoh as Jiang Nan.
“There are many iterations of Shang-Chi throughout the comics, but there was always a core relationship between him and his father that was extremely complicated — and that was something I really related to,” director Destin Daniel Cretton recently explained.
“That was a big part of what I pitched: using the movie to explore the psychology of a kid who was trained to be a killer when he was young. Now that he has broken out of that, how does he learn to redefine himself in the world and find the balance of what his relationship with his father should be?”