Conversations have begun between MGM and Peter Jackson to direct "The Hobbit" which takes place before J.R.R. Tolkiens Lord Of The Rings trilogy.

In a letter to the fans on the website The One Ring, MGM chief operating officer Rick Sands confirmed the two parties were in talks stating that Jackson was the "most ideal choice" for directing the Hobbit.

The Hobbit focuses on the story of Bilbo Baggins and the creature Gollum as they discover the power and mystery of "the one ring".