This from Broadwayworld.com:
"PC: Are you involved in THE HOBBIT?
IM: I am not under contract, no.
PC: Have you had any meetings?
IM: I'm not going to say any more than that because it might complicate things! So, I would say - at the moment - no, I am not under contract.
PC: Is it OK for me to then take that as a "Yes" with a "but..."?
IM: Laughs. I'm not saying any more than what I've said! Laughs."
Make it happen already. Peter Jackson needs Ian to help bridge the gap between the 'Lord Of The Rings' and 'The Hobbit'. Could 'The Hobbit' work with out Ian McKellen? No, I don't think that it could.
Peter Jackson get off your duff and get Ian McKellen signed now!
'The Hobbit' currently stars James Nesbitt, newcomer Adam Brown, Martin Freeman, Richard Armitage (Captain America: The First Avenger), Aidan Turner (Being Human), Rob Kazinsky (EastEnders), Graham McTavish (Secretariat), John Callen (TV’s Power Rangers Jungle Fury), Stephen Hunter (All Saints), Mark Hadlow (King Kong), Peter Hambleton (The Strip)and Andy Serkis as Gollum.