For a film following one of the most successful trilogies of all time, The Hobbit has had difficulty getting off the ground. Numerous casting conflicts and shooting delays have mired the film for months now, but the final blow had yet to be struck. Director Guillermo del Toro (Pan's Labyrinth, Hellboy)has left the production after signing on more then two years ago.

Del Toro announced today to the Lord of the Rings fansite theonering.net that numerous delays have scared him away from the project. "In light of ongoing delays in the setting of a start date for filming The Hobbit, I am faced with the hardest decision of my life. After nearly two years of living, breathing and designing a world as rich as Tolkien's Middle-earth, I must, with great regret, take leave from helming these wonderful pictures. I wish the production nothing but the very best of luck and I will be first in line to see the finished product. I remain an ally to it and its makers, present and future, and fully support a smooth transition to a new director."

Del Toro will still co-write the film along with Peter Jackson and Fran Walsh.