TheOneRing.net discovered an article on the Australian site Dunoon-Observer that Australian actor Sylvester McCoy is in talks for a role in The Hobbit.
Sylvester McCoy told the site that he is not up for the role of Bilbo Baggins in The Hobbit, but is in talks to play a wizard in the film:
"I am being cast in The Hobbit," he said. "We're currently in negotiations - there are two of us under consideration. It's not the Bilbo role, but could be bigger."
TheOneRing.net has heard rumors that the wizard Radagast the Brown could have a bigger role in the movie and are speculating that is the role Sylvester McCoy could be up for.
We'll be sure to keep you posted with any further news on The Hobbit and The Hobbit Sequel as soon as we have more information.