Peter Jackson is currently looking for Hobbit actors

Last month we heard that Lord of the Rings director Peter Jackson was in negotiations with Warner Bros, New Line and MGM to direct the two Hobbit movies, and while he hasn’t signed on officially, he is fulfilling directorial duties by looking for potential cast members.

From Heat Vision:

“The Hobbit” still has not been officially greenlighted, but director Peter Jackson is in Los Angeles this week quietly meeting with actors. The casting trip, which also included stops in New York and the U.K., underscores the progress being made on a complex series of deals to bring J.R.R. Tolkien’s epic fantasy novel to the big screen.

Sources say Jackson’s pact with Warner Bros. to direct the two-part “Hobbit” adaptation is close to done, but the sticking point continues to be the dire financial situation at MGM, which holds half the rights to the property.

They also say that Warner Bros. “is furiously negotiating with MGM” to try and get things moving. MGM recently requested a 6th extension on its $4 billion debt which could mean no green light can be given for another few months. If Warner Bros. can somehow wrestle The Hobbit rights away from the sinking ship we may still see Middle Earth on the big screen in 2012.