"The Sublimation of Azra is a superb piece of writing. It tells a gripping story without talking down to its young audience," the judges said.
The winner receives a one-week fellowship at Varuna, the Writers' House.
Runners up were Belinda Campbell for her novel, White Pigeon, and Eleanor Limprecht for her novel, Long Bay.
The two runners up will receive books donated by Hachette Australia and the opportunity to submit their manuscripts for assessment by Hachette publisher Vanessa Radnidge.
Judges of the 2013 NSW Writers' Centre Varuna Fellowship were publisher Vanessa Radnidge, poet and editor Fiona Wright and NSW Writers' Centre Executive Director Jane McCredie. Previous NSW Writers' Centre Varuna Fellowship winners include Greg Woodland, Lucie Stevens and Alison Thompson.