The competition is open to all adults in the UK from today (11 November), with the winning story being published for free for five days in the run up to Christmas. It will be available for purchase thereafter.
Anyone with a Kindle e-reader, Fire tablet or Kindle reading app for iOS and Android can buy the book, said Amazon, which will be promoting the competition through its social media channels.
The successful author will receive a £2,000 Amazon gift card, a Fire tablet and royalties from the book following the initial five-day giveaway period.
Amy Worth, UK Kindle content director for Amazon, said: "The fact that there are so many versions of 'Twas the Night Before Christmas available on the Amazon store is testament to the popularity of the story. We want people to continue to read this tale forevermore, and we believe that by creating a modern day equivalent, we will be able to shine a spotlight on the original and launch the career of an aspiring storyteller."
Anyone wanting enter the competition should submit their 350-700-word story in English via email to firstname.lastname@example.org before 27 November.