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Peter Jackson to produce Hobbit films

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Peter Jackson at the Paris premiere of King Kong

Filmmaker Peter Jackson has signed up to produce two movies based on author JRR Tolkein’s ,The Hobbit, after resolving his legal feud with studio bosses over unpaid royalties.

Jackson has been locked in a bitter dispute with executives at New Line Cinema after claiming he had not been properly paid following the success of The Lord of the Rings trilogy, which he directed.

But the disagreement has now been resolved, and Jackson has confirmed he will be on board with the two new films, both of which are prequels to The Lord of the Rings.

He said: ‘I'm very pleased that we've been able to put our differences behind us. We are delighted to continue our journey through Middle Earth.’

A director for the movies is yet to be announced.