The JRR Tolkien book adptation was originally supposed to be in two parts but after reviewing footage he has already shot Jackson believes there is enough to support a third, the Daily Mail reported.
"Upon recently viewing a cut of the first film, and a chunk of the second, Fran Walsh, Philippa Boyens and I were very pleased with the way the story was coming together.
"We realised that the richness of the story of The Hobbit, as well as some of the related material in the appendices of The Lord of the Rings, gave rise to a simple question: do we tell more of the tale? And the answer from our perspective as filmmakers and fans was an unreserved 'yes'," the director said.
The first film in the trilogy, 'The Hobbit: An Unexpected Journey,' will be released December 14, 2012, with the second film on December 13, 2013, and the third film slated for summer 2014.
Jackson has successfully adapted JRR's 'Lord of the Rings'. 'Hobbit' is its prequel.