Kay has also been tasked with illustrating the rest of Rowling's best-selling series, with each of the other six books being released over the next seven years:
• Harry Potter and the Chamber of Secrets
• Harry Potter and the Prisoner of Azkaban
• Harry Potter and the Goblet of Fire
• Harry Potter and the Order of the Phoenix
• Harry Potter and the Half-Blood Prince
• Harry Potter and the Deathly Hallows
Kay acknowledges the job is a tough one, but says it's without doubt the best commission he has ever had.
"To be given the opportunity to design the characters, the costume, the architecture and landscapes to possibly the most expansive fantasy world in children's literature - well, let's just say I'm extremely excited about it," he said.
"However, I am also mindful of the huge responsibility this represents. I just want to make sure I do the best job I possibly can."
The new version of Rowling's first Potter book will be distributed to book stores around the country by Allen & Unwin NZ Book Publishers, on behalf of publishing house Bloomsbury.
It will be in a hardback format, have a ribbon bookmarker, head and tail bands and will retail at $69.99.
Rowling, who got a sneak preview of the new book, said she loved Kay's illustrations.
"Seeing Jim Kay's illustrations moved me profoundly," she said.
"I love his interpretation of Harry Potter's world and I feel honoured and grateful that he has lent his talent to it."
* The Herald has 10 copies of the new Harry Potter and the Philosopher's Stone to give away, thanks to Allen & Unwin NZ Book Publishers. Simply answer this question: Which Hogwarts house is Harry sorted into? and send your answer here.