The actor told Digital Spy that his Master of Laketown in the two-part film recalls Jackson's earlier work in movies like Bad Taste and Brain Dead.
"He was a shlock, gore director of the highest quality and wit," Fry said of Jackson. "My character is an opportunity for sheer grossness.
"He had me eating testicles... gross appetites. I mustn't give too much away but I've got a bald cap and then on top of that a really bad combover wig and this wispy moustache and wispy beard and horrible blotchy skin and disgusting fingernails.
"And generally speaking a really unappetising piece of work. And a coward to boot and very, very greedy."
The Hobbit will be divided into two parts and released as The Hobbit: An Unexpected Journey on December 14, 2012, and The Hobbit: There and Back Again on December 13, 2013.
Andy Serkis has said that the first trailer for The Hobbit will be released before the end of this month.
> 'The Hobbit: An Unexpected Journey' begins one-year countdown to release
Move through our gallery of pictures from The Hobbit: An Unexpected Journey below: