Author Neil Gaiman, who made a big success with his Sandman graphic novels and whose American Gods was a 2001 bestseller, has signed a three-book deal with executive editor Jennifer Hershey at Morrow/Avon, who had published his first work. She signed for two new novels and a book of short stories with agent Merilee Heifetz at Writers House. The North American deal includes audio. Gaiman is also the author of a children's book, Coraline, due this summer, and is at work on several movie projects.