THE HOBBIT is Shooting Next February - Plus: Casting Rumors are in Full Force

Peter Jackson has finalized his deal to direct The Hobbit with an estimated shooting date of February 2011 for a release in December 2012. UPDATE: Martin Freeman is close to sealing the deal as Bilbo Baggins and more casting rumors abound.

The Sherlock star is closing in on landing the starring role in the upcoming The Hobbit as Bilbo Baggins, plus Jimmy Nesbitt, Michael Fassbender and David Tennant are being pursued for unannounced roles as well. Andy Serkis and Ian McKellan are both set to return as Gollum and Gandolf.

Jackson will direct both parts of The Hobbit, which will release as two seperate films, with the second coming one year after the first. Both parts will be released in 3D.

The MGM studios money issues appears to also be resolved, according to the LA Times the situation has been cleared up in this following statement.

“MGM is expected to talk to potential funding sources, including other studios that could handle foreign distribution on its behalf. As a backup plan, Warner Bros. has agreed to loan MGM the money in exchange for additional rights to the picture beyond the domestic distribution it already controls.”

There however remains to be one issue left unresolved. The dispute with New Zealand's unions could possibly delay The Hobbit more, but other than that remaining issue, everything else has finally been resolved.