Peter Jackson, the director of "Lord of the Rings" series, will pen the "Hobbit" script, as well as its sequel, with Fran Walsh and Philippa Boyens.

According to Variety, the first movie will follow the adventures of Bilbo Baggins as he sets off to retrieve lost treasure. The sequel deals with what happened between the events after "The Hobbit" and beginning of "The Fellowship of the Rings."

The movies are expected to be released in 2011 and 2012, respectively.