The prize is being offered through a competition at the Long Street Summer Social, a new one-day festival taking place on Saturday, August 30.
The event is celebrating youth creativity and features live music, food and family-friendly activities.
The book competition is open to children in key stages one and two.
Fred Hulls, organiser and co-owner of the Good Food Kitchen and Bar, said: “Wotton is such a special place that punches way above its weight in terms of talent.
“We wanted to create an event which celebrates not only the community, but gives our younger generation a once-in-a-lifetime opportunity to share their talents with the world.”
The idea for the competition came after Mr Hulls and award-winning illustrator Seb Braun reached out to local schools, encouraging young writers to submit their stories.
Entries have been pouring in ahead of the deadline on Thursday, August 15.
Mr Hulls said: “We’re blown away – entries began to flood in quickly after we spoke to the schools.
“We’ve had more entries than we could’ve imagined in just a few weeks, and that got us thinking – how can we help other talented youngsters get their foot on the fame ladder?”
The festival has assembled a panel of entertainment industry experts to help identify and support promising young talent.
Mr Braun said: “It’s been a pleasure seeing the excitement on these young people’s faces when they learn that one of their ideas can be turned into a real book.
“It’s such an incredible opportunity and I’ve loved being a part of the journey so far.”
Key stage one pupils are asked to submit a front cover design, while key stage two entrants should include a cover and a story mountain outline.
A story mountain is a visual tool used to outline and understand the structure of a story.
The festival will also feature opportunities for young musicians, bands and DJs to perform.
For more information on the event, visit the Wotton Social website.