Peter Jackson will take charge of the most expensive film ever made when The Hobbit finally starts shooting in February 2011.
MGM and New Line are handing Jackson $500 million, which will buy a lot of second breakfasts.
It's the highest budget in movie history, at almost double the budget for the entire original Lord Of The Rings Trilogy ($281 million), beating the previous record holder - Pirates Of The Caribbean: At World's End - by $200 million.
But it does have to cover two films so, Pete, don't blow it all on genetically engineering a real dragon to play Smaug, okay?
What do you think he should spend the cash on? More fish for Gollum? Tell us below!