The digital book, re-telling the classic fairy tale, was rejected by judges who warned that “the use of pigs raises cultural issues”.
Becta, the government’s educational technology agency, is a leading partner in the annual schools award.
The judges also attacked Three Little Cowboy Builders for offending builders.
The book’s creative director, Anne Curtis, said that the idea that including pigs in a story could be interpreted as racism was “like a slap in the face”.
Next week, Becta will decide upon the fate of this famous political satire, to prevent Muslim children from being force-fed (you can decide if this pun was intended) tales of Stalinist pigs.