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Peter Jackson could still make Tolkien's The Hobbit, despite falling out with the studio which commissioned him to film The Lord of The Rings trilogy.
Bob Shaye, head of New Line Cinema, has told The Los Angeles Times his studio - which Jackson had sued for profits from The Lords of The Rings - was in talks with Jackson's representatives in a bid to mend fences and get him to direct The Hobbit.
"Notwithstanding our personal quarrels, I really respect and admire Peter and would love for him to be creatively involved in some way in The Hobbit," he said.
He had previously labelled Jackson as "arrogant", while Jackson and partner Fran Walsh took the unusual step of issuing a long statement on the internet last year declaring that because of clashes with New Line they had "no choice but to let the idea of a film of The Hobbit go".
A spokesman for Jackson told The Dominion Post last night: "Peter and Fran have always wanted to do The Hobbit but whether that happens is yet to be decided."
- NZPA