Elmo's back - giggling and flapping into the Christmas toy bestseller list

A boggle-eyed furry toy that flips on to its backside, dementedly flaps its arms and giggles is tipped to become one of the best-selling toys this Christmas.

The TMX Elmo - based on a puppet from the US show Sesame Street - has a wide range of movement for a cuddly toy and shrieks when it is tickled.

Launched at Hamley's toy shop in London yesterday, the doll is the follow-up to the surprise hit Tickle Me Elmo, which became the "must-have" Christmas present in 1996. Short supply of the world's first interactive cuddly toy caused "Elmo-mania" during which parents elbowed each other in the aisles to grab the toy. In the US, classified ads offered it for sale for £800.

Ten years on, Hamley's is confident that Elmo's latest incarnation (TMX stands for Tickle Me Extreme) will leap off the shelves.

"We expect TMX Elmo to be our number one toy for Christmas," said Dave Pope, Hamley's head buyer. "It will appeal to kids and adults and cannot fail to put a smile on your face. It will undoubtedly become a classic." Priced at about £35, the red Fisher-Price doll shuffles along, stands up, falls over and breaks into fits of laughter. It hysterically shrieks: "That tickles!" and "Again, Again! You did it, again!"

At the launch, a spokeswoman for the parent company, Mattel, said: "The kids here loved him and you can't really fail to smile." She added: "Tickle Me Elmo was the first cuddly toy with a feature -it giggled and shook if you tickled his tummy.

"He was huge 10 years ago. Everyone was buying him. He is often quoted in case studies of marketing."

Only about 50 Mattel staff knew details of TMX Elmo prior to its unveiling, the spokeswoman said.