The Pakistani 16-year-old will receive the award from 2011 Nobel Peace Prize winner and women's rights campaigner Tawakkol Karman at a glittering ceremony in The Hague on September 6, the Amsterdam-based organisation said.
Malala "risked her life in the fight for access to education for girls all over the world," KidsRights said in a statement.
"By awarding the 2013 International Children's Peace Prize... KidsRights shines the spotlight on a brave and talented child who has demonstrated special dedication to children's rights," it added.
The passionate advocate for girls education was shot in the head by a Taliban gunman while on a school bus near her home in Swat Valley last year.
She was given life-saving treatment in Britain where she now lives, but the attack galvanised her campaign for greater educational opportunities for girls.
Malala's brave fight back from her injuries and her speech at the United Nations in July have made her a leading contender for this year's Nobel Peace Prize.
But the response to her in Pakistan has been mixed, with many hailing her as a national heroine while others have criticised her for promoting a "Western" agenda.
The International Children's Peace Prize, an initiative of the Dutch based KidsRights Foundation, was launched in 2005 by former Soviet leader Mikhail Gorbachev, when he chaired the Summit of Nobel Peace Laureates in Rome.
It carries a cash value of 100,000 euros ($133,000) that is invested in projects relating to the winner's cause.
Last year's winner was 13-year-old Cris "Kesz" Valdez for his work with Filipino street children while he himself was destitute.
Cris received the prize from South African peace icon and Nobel Peace laureate Desmond Tutu, who is the award's patron.
COMMENTS (12)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
Same country ( Pakistan), Same Newspaper ( ET ), Same Readers ( Raj Kafir and others ), two women, Dr Afia Siddique and Miss Malala Yousafzai............. Choice is yours ( includes mine as well )...
ohhhhhhhhh noooooooooo. not malala Again. why is it that E.T bring malala news up everytime people has forgotten her?. does E.T get paid for it?. nobody cares abt her except some people here and there. she is not making me or abt 18,999 crore people proud. and abt 18 crore will ask: WHO is malala? if you ask them. But if you say the one WHO won 100.000 euro they will say oh that girl.
Where are PTI and JI supporters???
We congratulate Malala on yet another achievement and the honor she brings to her country. This brave little girl has stood up for the cause of education which is so important for any developing country. We salute Malala on her stance and congratulate children who strive for education all over Pakistan. US AID is one of the biggest supporter and contributor towards education in Pakistan. We are proud to be a partner in this important cause. The Children’s Peace Prize that Malala won will support her cause of girl education. Way to go Malala!
Abdul Quddus DET-United States Central Command
great face of pakistan and proud to be a pathan
@Grateful Pakistani, Malala is the daughter of entire humanity. There are several big posters of Malala at Infosys these days. I hope entire Pakistan follows her path & stand against fundamentalism & work towards education of each & every male & female in Pakistan.
Congratulations to Malala. Any twitters from Sharif brothers this time ? Any good words from any other Pakistani politician ? Hope Pakistan's ambassador will be attending the award function.
Malala, you are a true beti of this country and you have done us all proud. Your courage and bravery give me strength everyday. Hamesha kush raho bachay.
It makes me very proud to be a pukhtun from Mardan, She stood up even before the murderous act and she will go on defending the rights of children specially in KP.My gratitude and sincere thanks to the KidsRights committee for considering and awarding her this prize which she by all means deserve it. Malala, keep up the good work and ask the committee to spend some of this money in her school in Swat.
Lots of congratulations to one of the last few brave people in the country.
where she is right now..in Pakistan or England?
Another blow to conspiracy theorists and their headless followers always in mode of denial of outside world that cares for human values.