Road goes ever on as Hobbit film gets green light

Hollywood studio Warner Brothers has announced that Jackson will start work on his adaptation of JRR Tolkien's The Lord Of The Rings precursor in February, ending months of uncertainty about the fate of the long-awaited project.

The Hobbit - a co-production between New Line Cinema, its parent company Warner and Metro-Goldwyn-Mayer - has been in pre-production for more than two years and has been dogged by delays due to financial problems within MGM.

But it is still not known where the film will be made due to an ongoing dispute with actors' unions in Jackson's native New Zealand, where he was planning to shoot.

The country's natural scenery was a key element in the success of the spectacular The Lord Of The Rings films.

But the film-makers have been scouting alternative locations in Scotland, Ireland, Canada, Australia and eastern Europe. A spokeswoman for Jackson said an announcement on where the film would be shot was "probably a week or two away".

The Hobbit is to be filmed entirely in 3D and is promised to feature "groundbreaking special effects".

Jackson said: "Exploring Tolkien's Middle Earth goes way beyond a normal film-making experience.

"It's an all-immersive journey into a very special place of imagination, beauty and drama. We're looking forward to re-entering this wondrous world with Gandalf and Bilbo."

Warner Brothers president Alan Horn said: "There is no human being on the planet as qualified as Peter Jackson to direct these films.

"Peter is incredibly talented and has the creative vision and experience to bring this beloved property to life in a way that no other film-maker could."

Jackson took eight years to film the three instalments of The Lord Of The Rings, which raked in almost $300 billion.

The three ended up winning 17 of the 30 Academy Awards for which they were nominated. The key role of Bilbo Baggins was played by Ian Holm in the trilogy.