Wood plans to reprise his role of Frodo Baggins in Peter Jackson's Lord of the Rings prequel project.
Speaking to MTV, the actor said that Frodo will play a minor part in The Hobbit.
"You know, it's a very small piece, and I think that's the most appropriate. Obviously Frodo's not alive within the context of the Hobbit piece," he explained.
"The way that it'll fit in will not at all infringe upon the integrity of The Hobbit. So I think it's - it'll fit. And it'll be appropriate. And I'm excited. It'll be great."
The 29-year-old also revealed that he is looking forward to filming in New Zealand.
"It's a gift to be able to go back to New Zealand. I mean, it's largely the same crew and the same creative team. It's seven years since we finished on the last film, and it's an opportunity to go back and have a reunion with everyone," Wood said.
The Hobbit is scheduled to begin filming next month.