Making headlines

While many online virtual worlds are games that encourage users to live out a fantasy existence as a warrior or wizard, Second Life is intended to be a more playful version of the real world.

Second Lifers can alter their appearance to look like animals or robots and buy outlandish homes, such as giant shoes, to live in.

The virtual world has been in the news a lot recently as real world firms establish in-game presences. Car maker Toyota is planning to offer a virtual version of its Scion xB van to Second Lifers. BBC Radio One has rented an island in the game that will be used to stage concerts.

Mr Pasick said he would act like any other correspondent and chase up news stories in Second Life.

"As strange as it might seem, it's not that different from being a reporter in the real world," he said. "Once you get used to it - it becomes very much like the job I have been doing for years."

He is also planning to explore issues that the growth of online worlds have exposed, such as the intersection between real and virtual economies.

The currency in Second Life, known as Linden dollars, can be swapped for real money and many regular players make a significant income from their game transactions. On an average day the Second Life economy involves the turnover of goods and services worth more than 400,000 dollars.

News stories will be filed to a blog and to a portable device that Reuters will make available to Second Life avatars so they can stay up to date with the latest virtual and real world news.