Penguin Random House is creating one children's division to bring together some of the best talent in children's publishing.
Francesca Dow - currently MD Penguin Children's - will be MD of the division, with responsibility for all publishing from Penguin Children's and Random House Children's Publishers.
She will report to Tom Weldon, CEO of Penguin Random House UK.
Philippa Dickinson - currently MD of Random House Children's Publishers - will take on the new role of consultant children's publisher. She will have specific editorial responsibility for key projects and authors. Dickinson is plannign to retire in 2015.
"We passionately believe in children's publishing and plan to invest significantly in this area over the next few years," said Weldon. "We are determined to capture the readers of tomorrow.
"We believe that having one really brilliant and dynamic children's division will allow us to compete even more effectively on behalf of all our authors, illustrators and licensing partners for the attention of young readers in an environment which now offers them an unlimited choice of entertainment and information.
"I look forward to our new division being a brilliant and vibrant children's publisher. This is such an important part of our business and through it we are literally investing in our future."
Dow added: "I look forward enormously to working with Philippa and bringing our talented teams together to build this fantastic creative powerhouse."