New Line, the studio behind Peter Jackson's Lord of the Rings phenomenon, has bought the movie rights to Susanna Clarke's bestselling children's fantasy Jonathan Strange & Mr Norrell.

The deal is the third A-list franchise to be acquired by New Line following Philip Pullman's His Dark Materials and Cornelia Funke's German hit Inkheart.

Jonathan Strange & Mr Norrell centres on two magicians in an alternative early 19th century England, who split their time between involvement in the Napoleonic wars and a quest to find a mysterious figure known as the Faerie King. It has been just as popular with adults as with children.

The book has been a publishing phenomenon in Britain, where it was longlisted for the Booker prize, and shortlisted for the Guardian first book award. Variety says New Line paid a "high-six against seven" dollar figure for the rights.