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With their kitchen business on its last legs, Rebecca James, her partner, Hilary Hudson, and their four children were facing a bleak future. James, an unknown writer from Armidale, had already tasted failure. Her second novel had been rejected by every publisher in Australia and her first had earned her just $100.

Then, the day after the business finally closed, an email arrived. The publisher Allen & Unwin was going to make an offer for Beautiful Malice, James's thriller aimed at young teenagers.

''I thought, omigod - the universe looked after us!"

It was the start of a worldwide bidding war which has pushed advances on her manuscript past $1 million and led the The Wall Street Journal to wonder if she is the next J.K. Rowling.

Set in Sydney, James's novel depicts the relationship between Katherine, a solitary girl whose sister was brutally murdered, and gorgeous fun-loving Alice, who befriends her. Alice's influence is transformative, but as Katherine emerges from her grief, she discovers her new best friend can be chilling as well as charming .

The Wall Street Journal described how the book sparked a frenzy among publishers at the recent Frankfurt Book Fair and called it ''a sexy psychological thriller'', a ''brilliantly plotted page-turner'' and ''Stephenie Meyer ... without the vampires''.

It was a very different reception from that which greeted James's first book, Nightswimming. It was published by a small American publisher in 2007 and netted the author $100.

Beautiful Malice has been sold in more than 20 countries and is scheduled to be translated into at least 13 languages. Not bad for a book that was initially rejected by every literary agency in Australia.

"They said it wasn't sellable as young adult fiction," James said.

The $1 million is scheduled to be paid in four instalments over the next couple of years. The British literary agency C&W will take a cut of 20 per cent.

As yet, none of it has landed in James's account, but she has treated herself to a new laptop and two Cavoodle puppies.

She still feels overwhelmed by events. "It's just the biggest dream come true, but there's also another side. I wanted to make money, enough to be a writer, but I didn't ever think I'd get so much attention ... It's quite bizarre."

Beautiful Malice will be published in Australia in May; international release dates are being finalised. 

Rebecca James with her partner, Hilary Hudson, and Charlie, Oscar, Jack and Jimmy.