After worldwide box office sales of almost $3 billion for the trilogy of The Lord of the Rings, it’s unthinkable that anyone other than Peter Jackson, director of the films, could be involved in a project for The Hobbit, JRR Tolkien's original adventures in Middle Earth. But after a spat between Jackson and New Line Cinema threatened to derail the film, AP reports the Kiwi filmmaker has agreed to executive produce The Hobbit, with a director yet to be named.

The Hobbit will be split in two movies and filmed simultaneously much like the Rings. Filming for the project is expected to begin in 2009, with the first of the two films launching in 2010, and the second following in 2011.

New Line agreed to split The Hobbit 50/50 with MGM.

"I'm very pleased that we've been able to put our differences behind us, so that we may begin a new chapter with our old friends at New Line," Jackson said in a statement. "We are delighted to continue our journey through Middle Earth."