Rumours are swirling that New Line Cinema could be working on The Lord of the Rings prequel, The Hobbit.

A source has told TheOneRing.net the title 'The Hobbit' was spotted on a year planner in New Line's offices for 2007.

Director of the Lord of the Rings trilogy Peter Jackson has said a number of times, legal issues surrounding the JRR Tolkien story need to be worked out before he could even think about making a prequel.

Jackson's WETA Workshop is also rumoured to have been working on a movie version of The Hobbit.

However, Jackson has recently announced his next project will be a remake of the British war film The Dam Busters.

Sky News
I hope all the legal stuff can be sorted out and the Prequel to the Lord of The Rings goes ahead....Especially if they can get Peter Jackson on board as well...