Peter Jackson apparently is burying the hatchet and will be involved in creating the long-awaited Hobbit film!

The adaptation of JRR Tolkien’s 1937 novel (talk about longevity in a property) is set to be split into two films which are scheduled for release in 2010 and 2011. Of course, denials abound from both Jackson and New Line Studios but the web is rife with this story today.

Derailed by rights issues for some time over monies Jackson felt owed to him from the Lord of the Rings Trilogy of films (and not a small sum either), it appears the films are a go.

Jackson will not be directing however but producing the new films with a director yet to be announced. Too soon for any casting details but one wonders if they’ll sneak Ian Holm back into the project. He’ll be too old to play a young Bilbo Baggins in the Hobbit for sure.

Courtesy of the Brothers Hildebrandt.