Speculation has been at a fever pitch about what he’ll do next since Guillermo del Toro backed out of directing “The Hobbit.”

Now Deadline is reporting that del Toro’s next project will be to direct “At The Mountains Of Madness,” a 3D adaptation of the H.P. Lovecraft story for Universal Pictures. Sounds like a match made in heaven. The other big piece of news here is that “Avatar” director James Cameron is apparently set to produce the whole thing.

Pre-production is slated to begin in the coming weeks with shooting scheduled for next summer.

The Lovecraft story follows a scientific expedition to the South Pole in the 1930s  where a startling discovery is made that suggests mankind may actually be the progenitors of elder gods from another planet.

This news shouldn’t come as a big surprise as the director along with Matthew Robbins had written a script and even had the project set up at DreamWorks back in 20o4.  So the real surprise was when del Toro took the “Hobbit” job.  It looks like he’s now decided to take care of some old business.