A US newspaper is reporting that Hollywood studios could give The Hobbit the official go-ahead in the next few days, and production could begin as soon as mid-January.
The newspaper says the major hurdle is getting approval from debt-laden film studio Metro-Goldwyn-Mayer which owns half the rights to The Hobbit.
It says Warner Bros., its subsidiary New Line Cinema and partner MGM appear to be close to giving the official go-ahead.
The Los Angeles Times also cites an un-named person "close to the situation" saying the dispute with actors' unions is close to being resolved, further clearing the way for a green light.
Last week, New Zealand Actors' Equity asked people to hold off working on the film until it had met Sir Peter Jackson to draw up a standard contract.
Council of Trade Unions president Helen Kelly has met Sir Peter and said in a statement she hoped a meaningful dialogue could be established between the New Zealand Actors' Equity union, the Screen Production and Development Association and the production company making The Hobbit, Three Foot Seven.
Sir Peter last week dismissed requests for a meeting, saying the union should instead meet with the Screen Production and Development Association.
A spokesperson for Sir Peter on Sunday refused to comment on whether his position has since changed. New Zealand Actors' Equity has also not commented on Sunday.
Meanwhile, Economic Development Minister Gerry Brownlee says he's meeting with his officials on Sunday afternoon to discuss what role he might play in the dispute.
Mr Brownlee says he's met all the key players and there is goodwill all round to sort out the row. He says he wants to ensure the screen industry is not unnecessarily disrupted.
A correspondent in Los Angeles, Peter Bowes, says if the film goes ahead and is a success, Hollywood will soon forget the industrial troubles.
