Sir Ian McKellen to reprise Gandalf role

The Lord of the Rings star told Empire magazine that it was a plum role.

"Yes, it's true," he said, when asked if he was set to return. "Obviously, it's not a part that you turn down, I loved playing Gandalf."

Guillermo del Toro has been confirmed as directing The Hobbit and its sequel.

The 43-year-old filmmaker will move to New Zealand for four years to make the films back-to-back with executive producer Peter Jackson.

Del Toro wrote and directed Pan's Labyrinth, which earned six Oscar nominations in 2006 and won three awards.

He is also the director of the upcoming sequel Hellboy II: The Golden Army.

Sir Ian was also asked what would happen in the film, which takes place before Fellowship of the Ring.

"Well I've read The Hobbit so I've got a good idea of what the story would be," he told Empire.