According to the AP:

Peter Jackson and New Line Cinema have reached agreement to make J.R.R. Tolkien’s “The Hobbit,” a planned prequel to the blockbuster trilogy “The Lord of the Rings.”

Jackson, who directed the “Rings” trilogy, will serve as executive producer for “The Hobbit.” A director for the prequel films has yet to be named.

Here’s to hoping this opens up the roads for Jackson to take the writing and directorial reins. I had a public conniption last year about New Line making The Hobbit without Jackson. I’m breathing a sigh of relief now.