The judging panel, which revealed its decision at the London International Book Fair at Olympia, said the follow-up will appeal to both children and adults.

"I am delighted beyond words," said Geraldine after being picked by a London children's hospital which owns the rights to J.M. Barrie's classic tale of Tinkerbell, Wendy, Captain Hook and the boy who never grew up. "It is an astonishing, daunting privilege to be let loose in Neverland armed with nothing but a pen," she said.

The Great Ormond Street hospital in London launched the search for a sequel last year to mark the centenary of the classic and to keep much needed funds flowing when the copyright runs out -- in Europe in 2007 and in the United States in 2023.

Geraldine, author of over 130 books and plays and the only writer ever to capture the Whitbread Children's Book Award three times, won with her sample chapter and synopsis of a follow-up tale called "Captain Pan." One of the judges, Barrie's great-great nephew David, said of the competition: "Captain Pan had a real fight on his hands but won through in the end. I think JM Barrie would have liked his style. If I'm wrong he'll be back to haunt us."

Royalties from the new book will be split between the author and the hospital.