Copyright 2008 Brad Barket / Getty Images

Big news from Middle Earth: GUILLERMO DEL TORO is a lock to direct 'The Hobbit' and its sequel. Executive producer PETER JACKSON -- director of the 'Lord of the Rings' trilogy -- helped make the eagerly anticipated announcement on Thursday, Daily Variety reports.

According to the trade paper, Del Toro ('Hellboy,' 'Pan's Labyrinth') will relocate to New Zealand for the next four years to work closely with Jackson and his production teams on realizing the two 'LOTR' prequels, which will be shot back-to-back.

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Copyright 2007 Gareth Cattermole / Getty Images

Sir IAN McKELLEN, who mesmerized as Gandalf the Wizard in the 'Lord of the Rings' trilogy, may very well get to reprise the role in 'The Hobbit' films, the Associated Press reports. Asked by a fan if he planned on returning to Middle Earth for the two, upcoming 'L.O.T.R.' prequels, McKellen replied on his Web site:

"Yes, I will, if PETER JACKSON and I have anything to do with it, he being the producer and me being, on the whole, a very lucky actor," he said, adding: "Encouragingly, Peter and (partner) FRAN WALSH have told me they couldn't imagine 'The Hobbit' without their original Gandalf."

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