University of NSW researchers have found a drug effective in treating neuroblastoma, an aggressive form of childhood cancer.

Australian scientists have identified a molecular mechanism that contributes to development of neuroblastoma, a form of childhood cancer triggered by embryonic nerve cells.

The Children's Cancer Institute research team led by Michelle Haber and Glenn Marshall at the University of NSW also found the experimental drug CBLO137 may stop the development of the tumour.

The drug is being studied in clinical trials for cancer treatments in adults.

The research, published in the scientific journal Science Translational Medicine, found the use of CBLO137 in combination with traditional chemotherapy treatments is more effective in ensuring death of cancer cells.

"Our laboratory tests tell us that CBL0137 is likely to be very effective against the most aggressive neuroblastomas, and indeed the most aggressive forms of other childhood cancers," Haber said in a statement.

Neuroblastoma is the most common solid tumour found in children. Only a few manage to survive the intensive treatment.