The filmmaker wants to focus on smaller stories set in his native New Zealand once the final part of the tale, The Hobbit: There and Back Again, is released in December 2014.
He said:"We have got a few bits and pieces that we are working on, Fran Walsh and I. The things that we are most excited about are some New Zealand stories.
"We just want to step off the Hollywood blockbuster thing for a while and we've had a few New Zealand stories in line for a while that we think would make great films."
The director went on to suggest working on The Hobbit - which was not originally planned to be spread across three films - had taken five years out of his career and impacted on his plans, so he decided to "have fun" working on the series, which features Martin Freeman as Bilbo Baggins.
He added in an interview with the New Zealand Herald newspaper: "I am kind of excited about telling stories. I kind of decided I would try to make that the experience of this movie, because they were three movies that we didn't intend to direct at the beginning and suddenly we were.
"In some respects in terms of my remaining film-making career this was a five-year chunk that was kind of taken out of it unexpectedly. My future is five years less than I thought it was. I thought if I am going to do that I am actually going to enjoy it. I am going to have fun. Hopefully, that is reflected on the screen, too."
The second movie, The Hobbit: The Desolation of Smaug will be released in December.