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MGM has announced plans to film J.R.R. Tolkien's beloved classic The Hobbit over the next couple of years.

According to "Variety," the prequel to The Lord of the Rings – which the studio hopes Peter Jackson will direct – is one of several big-budget films that MGM has in the works.

The Hobbit, said to be budgeted in the $150-200 million dollar range and possibly to be released in two installments, reportedly will be produced in partnership with New Line Cinema. However a report on "Aint it Cool" states that Peter Jackson says he knows nothing of the new project.

A September report at TheOneRing.net claimed The Hobbit was on New Line's schedule for a July 2007 start date. Both MGM and New Line Cinema share the rights to The Hobbit, and MGM's Harry Evans Sloan has stated he’d like Peter Jackson to direct the film.

Excited fans will just have to wait for more news and updates to find out what is really going on with the much-anticipated prequel. Stay tuned for details!

In related The Hobbit news, casting began in London last month for the stage version of The Hobbit, and people reportedly lined up around the block to make it into the auditions (each having to be under 5’7” tall).

Find The Lord of the Rings and everything Tolkien at Tolkien Town

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