Peter Jackson and Fran Walsh, the masterminds behind the Lord of the Rings movie trilogy, will produce two films based on J.R.R. Tolkien’s classic tale The Hobbit, according to a press release issued today jointly by Jackson and the heads of MGM and New Line studios.

The two Hobbit films — The Hobbit and its sequel — are scheduled to be shot simultaneously, with pre-production beginning as soon as possible. Principal photography is tentatively set for a 2009 start, with the intention of The Hobbit release slated for 2010 and its sequel the following year, in 2011.

Additionally, the announcement stated that Jackson’s lawsuit against New Line over Rings accounting practices has been settled.

Here’s are some details from the announcement:

• MGM and New Line will co-finance and co-distribute two films, The Hobbit and a sequel to The Hobbit. New Line will distribute in North America and MGM will distribute internationally.
• Peter Jackson and Fran Walsh will serve as Executive Producers of two films based on The Hobbit. New Line will manage the production of the films, which will be shot simultaneously.
• Peter Jackson and New Line have settled all litigation relating to the Lord of the Rings (LOTR) trilogy.

Bob Shaye, New Line Co-Chairman and Co-CEO comments, “We are very pleased we have been able to resolve our differences, and that Peter and Fran will be actively and creatively involved with The Hobbit movies. We know they will bring the same passion, care and talent to these films that they so ably accomplished with The Lord of the Rings trilogy.”

In January, Shaye made headlines when he stated that as long as he’s in charge of New Line, the studio will not work with Peter Jackson on a proposed movie based on The Hobbit or any other film.

Jackson co-wrote, co-produced, and directed The Lord of the Rings movie trilogy (with fellow Academy Award winners and frequent collaborators Fran Walsh and Philippa Boyens), which grossed nearly $3 billion worldwide at the box office. In 2003, the final film, Return of the King, swept the Academy Awards, winning all of the eleven categories in which it was nominated, including Best Picture — the first ever Best Picture win for a fantasy film. The trilogy’s production was also unprecedented at the time.

The Hobbit is a prequel to the events of the LOTR trilogy. The story follows the adventures of the hobbit Bilbo Baggins (Frodo’s uncle), who travels away from home with the wizard Gandalf and a band of dwalves, which leads to an encounter with the creature Gollum and the finding of the One Ring.

For more information about “The Hobbit” films, please visit www.thehobbitblog.com.