The two films are being directed by Peter Jackson, 49, who made the hit "Lord of the Rings" trilogy and only last week was released from hospital following emergency surgery for a perforated ulcer. "Despite some delays we are fully back on track and very excited to get started," Jackson said in a statement.

Filming will begin on March 21 and the movies will be shot at Stone Street Studios in Wellington and on location around New Zealand. The first of the two movies will be released in December 2012 and the second is expected a year later. The movies have been beset by a succession of problems, most notably the threat last year by Time Warner Inc unit Warner Bros. to move production overseas because of fears unions would impose a boycott to back demands for a collective contract.