Peter Jackson's upcoming Hobbit movie will include Ian McKellen as Gandalf:

Jackson is hard at work prepping a return to Middle-earth with "The Hobbit" and has revealed to us that three -- and only three -- of the "Rings" actors will be returning for the family reunion.

"Gandalf, being a 2,000-year-old wizard, is still around and plays a major role in 'The Hobbit,' and we're having Ian McKellen reprise," explained the filmmaker, who is executive-producing the flick and writing the screenplay. "There's a couple of other characters: Elrond, who was played by Hugo Weaving [in the original films], and there's a possibility of Galadriel, who was played by Cate Blanchett."