BEIJING, Aug 16 (Reuter) - China denied on Friday it had detained the six-year old Tibetan boy it refuses to recognise as the reincarnation of the Panchen Lama.

``The Dalai Lama's illegally appointed 'soul boy' is leading a free life, just like other Tibetan children,'' the official Xinhua news agency said.

According to the Dalai Lama, Tibet's exiled spiritual leader, six-year-old Gedhun Choekyi Nyima is the 11th incarnation of the Panchen Lama, Tibet's second holiest monk, who died in Beijing in 1989.

But Beijing, which accuses the Dalai Lama of spearheading a campaign of independence for the Himalayan region, countered with its own reincarnation, also a six-year-old boy.

Two Western human rights groups have accused China of detaining the Dalai Lama's candidate and of cracking down on monks who refuse to accept Beijing's choice.

China also lashed out at the Dalai Lama, quoting its own candidate, Gyaincain Norbu, as saying the 1989 Pulitzer Peace prize winner was the cause of turmoil in the region.

The Beijing-backed candidate said the Dalai Lama, who has led a peaceful campaign for autonomy for the Buddhist region, was to blame for the bombing of a monument in Lhasa last year.

``With the help of international anti-China forces, the Dalai Lama has used his religious influence to plot for Tibet's independence, which not only tarnished the Tibetan religion, but also brought disaster to Tibet,'' he was quoted as saying.

The Dalai Lama fled his homeland along with thousands of followers in 1959 after an abortive uprising against Chinese rule. He heads a government-in-exile, which is not recognised by any country, in the Indian town of Dharamsala.

The 10th Panchen Lama said shortly before his death that he and the Dalai Lama should approve each other's reincarnations.

12:44 08-16-96