Seven writers, including the current Children's Laureate, Jacqueline Wilson, will provide the opening paragraph to a story or play, and entrants can choose one or more to develop into a work of their own. The writers will each provide the opening paragraph of a story. David Wood will provide the opening lines to a play and Lauren Child, the opening images of a picture story. The winning entries will be published in a book later on in the year to be sold in aid of this year's Blue Peter Appeal.

Blue Peter editor, Richard Marson, said, "We know that Blue Peter viewers love books, from the success of our Book Club, but now we want to see how they cope with the challenge of coming up with their own story or play.

"The top class writers we are working with represent a range of styles and we hope there will be something there to stimulate imaginations across the age range of our viewers."

In addition to having their work published and illustrated, the winners will each receive a laptop computer and will be invited to participate in a writing workshop. 500 runners-up will receive a signed copy of the new Blue Peter Annual and a competition winner's badge.

Arts Council England's Chief Executive, Peter Hewitt, said: "This is a fantastic opportunity to discover new young talent. Blue Peter is such a long-standing favourite with children and the Arts Council are thrilled to be working with them to inspire kids and give them the chance to work with some of the country's best writers."

The Blue Peter Storytellers competition will feature on the show throughout this month and the beginning of October.