Bob Shaye: "Peter Jackson may still be involved in The Hobbit"

It has been reported that Peter Jackson may still be involved in The Hobbit, according to Lord Of The Rings executive Producer Bob Shaye.

The pair famously fell out over the profits of the fantasy trilogy, but Bob Shaye believes the LOTR filmmaker should have input on the prequel.

He says, "I really respect and admire Peter and would love for him to be creatively involved in some way in The Hobbit."

Spider-Man director Sam Raimi is also tipped to direct the film.

After the success of the Lord Of The Rings trilogy it was expected that Peter Jackson would once again lead fans to Middle Earth and direct "The Hobbit".

Jackson became locked in a bitter feud with New Line Cinema, who distributed LOTR, over a DVD royalty dispute claiming that the studio still owed him money.

However, Shaye has insisted that Jackson had been paid according to the terms of his contract. New Line Cinema are in a rush to make the movie as they only hold the rights to The Hobbit for a limited time.