Guillermo del Torro is cautioning fans that it is not a "sure thing" that he will direct The Hobbit for New Line Films.

For years Peter Jackson seemed the obvious choice for directing the Tolkien story, but a legal dispute with New Line over Lord of the Rings revenue soured his relationship with the studio.

Del Torro, who most recently helmed Hellboy II told TotalFilm.com that the news broke before the negotiations were complete. He added that he would love to direct the fantasy tale, because The Hobbit is the Tolkien book most resembling a fairy tale.