MGM have admitted that they want Peter Jackson to direct The Hobbit film, and that they've already approached him to do it.

Through the most excellent site Film Rotation, in a response to the petition open letter from Theonering.net, Theo Dumont, the Manager of Public Relations for MGM Studios, says:

"Peter Jackson's phenomenal success with The Lord of the Rings trilogy makes him the first and most ideal choice for directing The Hobbit," said MGM COO Rick Sands. "MGM would be thrilled to collaborate with the Academy Award-winning director on this MGM New Line Cinema production. And, I'm sure to the delight of the 50,000 filmgoers who have petitioned us in recent weeks, demanding we bring this film to fruition, we have had a few initial conversations about the project with Mr. Jackson's representatives."

Well at least they are listening to the fans and know who would do it best...right now at least. What they don't really say though is what the petition is really concerning, not the Director but the stars. The petition wants the same cast as the trilogy...which is more important?