Chinese blockbuster "Ne Zha 2" has ousted Disney's "Inside Out 2" to become the highest-grossing animated film of all time, state media reported, citing a domestic ticketing platform.

"Ne Zha 2" has packed out cinemas in China, where it has already claimed the title of the country's biggest box-office release, since its release last month.

State news agency Xinhua, citing ticketing platform Maoyan, said on Tuesday that the fantasy epic had raked in more than 12.3 billion yuan ($1.7 billion).

That figure edged it past "Inside Out 2", which took $1.7 billion foll owing its release last year.

"Ne Zha 2" tells the tale of a rebellious young deity who uses his powers to battle formidable foes after his village is destroyed.

The film was released overseas this month, sparking hopes among many Chinese that it would garner similar acclaim abroad.

The original "Ne Zha" became what was then China's highest-grossing animated film after it was released in 2019.