'Outlaw Pete', based on an eight-minute ballad from Springsteen's 2009 Working on a Dream album, will be published by Simon & Schuster in November, reported Rolling Stone magazine.
Frank Caruso, a cartoonist and writer, who had the idea of turning the song into a book, and persuaded Springsteen to write the text, provides the illustrations.
Springsteen, 64, joins Madonna, Sting and Paul McCartney in the pantheon of music stars-turned-children's authors.
The New Jersey rocker's tale was inspired by memories of Brave Cowboy Bill, a 1950s children's book which his mother read to him as a child.