Even though Guillermo del Toro has departed from The Hobbit and MGM's financial woes have threatened to complicate things further, gears reportedly continue to turn behind the scenes. Seventh Doctor and Karen Gillan's fellow Scot from Doctor Who Sylvester McCoy has been rumored to be in line for a part in the film previously, but instead of taking on Ian Holm's Lord of the Rings role as Bilbo Baggins, McCoy is now being mentioned as a candidate to play a wizard.
McCoy could play Radagast the Brown, according to an anonymously-sourced report on Bleeding Cool. It's not the headlining spot that some DW fans might have hoped to see him land, but for those who enjoyed his arguable god complex and manipulative bent as a Time Lord, a wizard in Tolkien's world shouldn't be a huge stretch.
Neither McCoy nor a director have been nailed down yet, however, and until Peter Jackson and MGM get things stabilized, pretty much everything Hobbit-related is up in the air right now. Still, any signs of life are good signs for Jackson supporters at this point, so perhaps forward movement for the project remains to be seen in 2010.