The director of the Oscar-winning "The Lord of the Rings" movies said Monday that after viewing a cut of the first film and part of the second that there was room for a third.
Jackson says in a statement that a lot of J.R.R. Tolkien's tale of Bilbo Baggins would remain untold if a third film wasn't made.
Warner Bros. and MGM will continue their partnership to make the trilogy.
The first film, "The Hobbit: An Unexpected Journey," hits theaters Dec. 14, while the second, "The Hobbit: There and Back Again" is set for release on Dec. 13, 2013.
The third film will come out in the summer of 2014.