Amazon Studios' upcoming "Lord Of The Rings" series will be shot in New Zealand.

The show, based on JRR Tolkien's fantasy novels, has already started pre-production in the country, which was the backdrop for Peter Jackson's acclaimed feature films as well, reports "hollywoodreporter.com".

Production in Auckland is expected to begin later this year. According to a source, the budget of project could hit $1 billion, after considering the production costs, visual effects and the cast and creative teams. Amazon bought the global rights to the property by paying around $250 million.

"As we searched for the location in which we could bring to life the primordial beauty of the Second Age of Middle-earth, we knew we needed to find somewhere majestic, with pristine coasts, forests, and mountains, that also is a home to world-class sets, studios and highly skilled and experienced craftspeople and other staff," said showrunners and executive producers JD Payne and Patrick McKay.

"We're happy that we are now able to officially confirm New Zealand as our home for our series based on stories from J.R.R. Tolkien's 'The Lord of the Rings'," they added.

Set in Middle-earth, the TV adaptation will explore new storylines.