Peter Jackson WILL be directing The Hobbit after all!

Time to break out the ale and pipe-weed, because we're ready to party!

What we hoped would happen, but didn't dare to think actually would, seems to be coming true. Peter Jackson, who pulled off the impossible with the Lord of the Rings trilogy, has decided to direct two installments of The Hobbit after all, Deadline New York reports.

Earlier this month, after Guillermo del Toro quit his Hobbit directing gig, Jackson said his taking over was unlikely due to current commitments. But he did leave open a slim possibility—and we say "slim" because he sounded a bit reluctant—by saying: "If that's what I have to do to protect Warner Brothers' investment, then obviously that's one angle which I'll explore."

Apparently, explore he did, because his deal is reportedly being negotiated right NOW with Warner Brothers, New Line and MGM.

There are no further details as yet, other than the fact that Jackson, Fran Walsh and Philippa Boyens are scheduled to head to London the week of July 4, after which they'll be going to Los Angeles to meet with the actors who've impressed them the most from those that have been taped by casting directors.

Are you as happy as we are right now?