According to Variety, less than two months before its December 14 release, Universal Pictures has doubled down, agreeing to release Peter Jackson's three-hour cut, which will push the budget to $207 million.

The budget on the great ape epic went up primarily because of the additional FX work needed. Jackson and U had originally contemplated a running time of around two and half hours, with a budget around $175 million.

Jackson's original $20 million deal for King Kong -- which covered helming as well as writing and producing with wife Fran Walsh -- included a penalty if he brought it in over budget.

U and Jackson's camp have been in recent days negotiating how to pay for the overages. The result: Jackson will pay for the bulk of the additional $32 million needed to bring in the super-sized King Kong.

However, just the fact that "Kong" carries a $207 million price tag -- despite Jackson's own Weta Digital FX shop doing all of the FX work and the production receiving subsidies from New Zealand -- dramatically illustrates the escalating costs for Hollywood's biggest spectacles.

The Universal delegation knew they were going to see a three-hour version, but hadn't made any decisions on whether to release it.

"We expected to see a long movie," said U chair Stacey Snider, "and we loved it. It's a brilliant movie, an epic feast."

Studios normally seek to avoid longer runtimes since it limits the number of showings when a pic is released in theaters. However, some of the biggest grossing pics have had three hour run times, including all of Peter Jackson's "Lord of the Rings" trilogy. The final installment, "The Return of the King," clocked in at three hours and 20 minutes.

And of course, the all-time biggest grossing film Titanic reached $600.8 million despite running three hours and four minutes.

Still, by opting for a three-hour runtime, Jackson will nearly double the 1933 original "Kong's" one hour and 40 minute length.

King Kong was released December 14th, 2005 and stars Naomi Watts, Jack Black, Adrien Brody, Thomas Kretschmann, Colin Hanks, Andy Serkis, Evan Parke, Jamie Bell. The film is directed by Peter Jackson.