Speaking at the supermarket's Q4 and full year results, CEO Andy Clarke revealed a new logo for the brand, which keeps the retailer's traditional green branding but incorporates Walmart's design.
The move will overhaul the brand to further highlight Asda is part of the American retail giant. It will also adopt Walmart's "save money, live more" slogan.
The rebranding kicks off in the summer but will appear on new stores from next month with a "new look and feel".
He said there was a "scale advantage of being part of the world's biggest retailer" and customers felt "positive" about the changes in research. "We haven't touched the brand since 2002 and have seen an opportunity to make some changes to the way the brand looks. Yes there is some connectivity with our parent and why wouldn't we want that."
"The continuing relationship and the benefit of being a part of Walmart with its innovation and capability... Being part of Walmart gives us an advantage against our competitor set."
He said the George brand had seen strong growth and that Asda was exploring opportunities to "broaden" the brand internationally.
The grocery market had been, he said, through "a significant year of change" as he revealed its fourth quarter and full year financial results for 2014, posting a 1% fall in like-for-like sales for the year to 31st December and a 2.6% fall in the 12 weeks to 4th January.
In response Asda had "accelerated the level of investment [to] widening the gap between the big three and closing the gap between the discounters," he said.
The announcement follows a number of changes to the Asda team, with COO Mark Ibbotson moving to Walmart and former marketing chief Steve Smith returning to Walmart after a secondmentChris McDonough also left amid the reshufflle, replaced by Barry Williams.