by Michael Moran, Times Online

The long-awaited Hobbit movie, first mooted over a decade ago by New Zealand director Peter Jackson, is edging its way towards the screen.

The adaptation of JRR Tolkien’s 1937 novel is set to be split into two films which are scheduled for release in 2010 and 2011 - despite some fairly unequivocal denials from both Jackson and New Line Studios as recently as a month ago.

The production has been repeatedly derailed by rights issues and Jackson’s desire to remake King Kong for Universal Pictures, which soured relations between New Line and the director.

Jackson will be producing the new films, with a director yet to be appointed. No casting details are expected to emerge for quite some time.