De wikipedia:

On September 17, 2005, IMDB posted that Uwe Boll had been chosen as the director of this project. Bungie Software later proved this to be false. On September 21, 2005, IMDB removed the statement after creating controversy with die hard fans of the game series. Another rumor was that Peter Jackson, who directed the blockbuster Lord of the Rings movies, would direct. Both rumors have been proven untrue, however. The director has not yet been chosen. But according to Bungie.net(4), Jackson will be the executive producer for the film.

On October 4, 2005, Universal Studios announced that Peter Jackson and Fran Walsh will be executive producers of the film, and that Weta Digital will provide the special effects.

This movie will be released sometime in 2007.