It has been reported today that Peter Jackson and New Line Cinema have put their differences behind them to make two new movies from JRR Tolkien's acclaimed series.

The two parties (who have teamed with MGM) have settled all litigation relating to the "Lord of the Rings" and have agreed to make "The Hobbit" and a sequel to "The Hobbit".

"I'm very pleased that we've been able to put our differences behind us," said Peter Jackson, "so that we may begin a new chapter with our old friends at New Line. 'The Lord of the Rings' is a legacy we proudly share with Bob and Michael, and together, we share that legacy with millions of loyal fans all over the world. We are delighted to continue our journey through Middle Earth. I also want to thank Harry Sloan and our new friends at MGM for helping us find the common ground necessary to continue that journey."

The two movies are planned to be shot simultaneously and pre-production is scheduled to begin as soon as possible. This was the same way the "Lord of the Rings" trilogy was shot and proved to be one of the reasons for the movie's success.