Peter Jackson in negotiations to direct The Hobbit

Listen to the tiny voices of Middle Earth celebrating in unison. Peter Jackson is in talks to direct the two films based upon J.R.R. Tolkien’s The Hobbit.

According to THR, Jackson is officially negotiating a deal to helm The Hobbit films following former-director Guillermo Del Toro‘s departure from the project.

Jackson and Del Toro had spent around two years working on the highly-anticipated prequel to Jackson’s own Lord of the Rings trilogy.

However, the project’s ongoing delays (the result of studio MGM’s financial woes) led to Del Toro abandoning the project in heartbreaking fashion.

Jackson stated at the time of Del Toro’s exit that he would consider directing the films, if only to protect Warner Bros investment (MGM and WB jointly hold the rights to Tolkien’s work).

There are obstacles in the way of Jackson’s signing. He is committed to what THR calls “secret projects”, as well as the CGI Tintin trilogy he is helming alongside Steven Spielberg. His signing will be dependent on the flexibility of these other commitments, and his ability to deliver the back-to-back Hobbit instalments in 2012 and 2013.

More news as it develops.

Discuss: Would you like to see Jackson head back to Hobbiton? Even if it’s just to “protect Warner Bros’ investment”?