If they can agree a deal for Newell to direct the film he will become the first British director to take on a Potter movie.
Chris Columbus directed the first two Potter films
There have been rumours that the fourth film might broken into two because the book is so long, but until a director is chosen, no decision will be made.
Newell has already directed one of the most successful British films of all time, Four Weddings and a Funeral starring Hugh Grant.
The third film in the series, the Prisoner of Azkaban, is being made at the moment by Mexican director Alfonso Cuaron, and will be in cinemas in 2004.
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