The Lord of the Rings stars have been approached about a potential role in The Hobbit more times than Bob Stoops and Urban Meyer have been asked about the Notre Dame job. John Rhys-Davies and Viggo Mortensen have already been contacted by reporters. I don’t know if Cate Blanchett and Hugo Weaving have been too, but Peter Jackson, in a conversation with MTV, said that both of their characters could be returning:
“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.”
It doesn’t appear that the casting is official, but he says that he has no fear they would return. Since the role is likely to be small anyway in such a blockbuster film, he is probably right. Jackson also discussed his enjoyment of the writing process – it’s good to hear that he’s not just a producer and is actively involved creatively with many of his films – and shot down the possibility of just about any other potential returning character.