Peter Jackson back on The Hobbit as producer

New Line and director/writer Peter Jackson have settled their differences and are set to start work on J.R.R. Tolkien's The Hobbit. Jackson will not be handling directing or writing duties, but will serve as an executive producer on the project. Peter Jackson - The Lord Of The Rings - The Return Of The King - Movie Premiere - Mann Village Theatre - Westwood, CA © Glenn Harris / Photorazzi

Peter Jackson - The Lord Of The Rings - The Return Of The King - Movie Premiere - Mann Village Theatre - Westwood, CA © Glenn Harris / PhotorazziNew Line and Jackson resolved their issues concerning Jackson's profit participation on the $3 billion-grossing Lord of the Rings, and have reached an agreement on The Hobbit – which New Line and MGM hold feature rights. New Line and MGM will co-finance and co-distribute the movies. New Line will handle the North American distribution and MGM will take care of the international distribution, according to The Hollywood Reporter.Jackson has decided not to write or direct the Hobbit project (which will be two movies) due to his busy schedule – including The Lovely Bones and Tintin. His role as executive producer gives him approval over creative elements of both films.The Hobbit will go into pre-production in January with principal photography set for 2009. Both films will be shot simultaneously. The production budget is scheduled to be about $150 million per film. The first Hobbit film will make its way to theaters in 2010 with the sequel following in 2011.Jackson will have a meeting with studio heads in January to work out who will be the writers and directors for the films. Although he has denied any involvement, director Sam Raimi’s name continues to be rumored. The director had stated he would not be involved in the project without Jackson.