The Royal Children's Hospital tested more than 2,000 children with coughs, fever and wheezing and discovered the new WU Polyoma virus in 39 cases.
The hospital's Associate Professor Michael Nissen says the discovery offers hope to children with infections that they could not previously identify.
"Initially our focus is going to be on how widespread the virus is in the community, how you can develop antibodies to it, develop a reliable diagnostic test for the virus," he said.
"Then whether it's necessary to think about the development of anti-viral medication or a vaccine." SOURCE: © 2007 Australian Broadcasting Corporation