Slashfilm's source - which is apparently very up to date and legit - is reporting that David Yates is the frontrunner to replace Guillermo Del Toro. After Del Toro left The Hobbit production when it went into development hell, rumors were that Peter Jackson would suck it up and just return to the chair.
But it appears that Yates, whose previous work includes the final two Harry Potter films as well as a couple more Potter films in Order of the Phoenix and Half-Blood Prince, is about to step into the world of more grown up fantasy.
His 'darker' Potter films might make him an interesting choice to step into the director's chair for Hobbit - but even if he does, will this movie ever be made? Del Toro's absence leaves a bad taste in my mouth considering he left behind tons of concept art and imagery that will no doubt make it's way into the movie regardless of his presence - IF it ever happens.