Guillermo del Toro directing The Hobbit and its sequel!

It’s official! Hellboy’s Guillermo del Toro has signed with New Line-MGM to direct The Hobbit and its sequel. Guillermo Del Toro - Hellboy Movie Premiere - Arrivals - Mann's Village Theatre - Westwood, CA , USA © Lee Roth / RothStock / PR Photos

Guillermo Del Toro - Hellboy Movie Premiere - Arrivals - Mann's Village Theatre - Westwood, CA , USA © Lee Roth / RothStock / PR PhotosVariety reports the expected announcement came on Thursday afternoon from executive producers Peter Jackson and Fran Walsh, New Line president Toby Emmerich and Mary Parent, the head of MGM's Worldwide Motion Picture Group.Del Toro is expected to move to New Zealand where he will work with Jackson, Wingnut and WETA production teams over the next four years. The Hobbit films will be shot back-to-back with the sequel covering the 60 years between J. R. R. Tolkien’s "The Hobbit" and "The Fellowship of the Ring" – which is the first book of the "Lord of the Rings" trilogy.New Line is set to oversee the development on the two films and will manage productions. The two films are co-produced and co-financed by New Line Cinema and MGM. Warner Bros. is set to handle domestic distribution and MGM will handle international.Del Toro’s Pan's Labyrinth was released through New Line's Picturehouse. The film received numerous award nominations and went on to set a record for the highest grossing Spanish language film at the U.S. box office. The director's Hellboy 2: The Golden Army is set to hit theaters on July 11th and sees the big guy saving the world from the rebellious mythological creatures.