Hobbit movies will be made in New Zealand
27 October 2010 Last updated at 11:49 BST
The Hobbit movies will be made in New Zealand after a deal was reached between film executives and the unions.
Warner Bros and New Line had considered taking the production elsewhere after acting unions threatened to boycott the films in a row over wages.
Making the announcement, Prime Minister John Key said he was "delighted" about the result, which he hoped would again promote "New Zealand on the world stage".