Zara Phillips told yesterday how she is setting her sights on the 2008 Olympics following her "amazing" victory in the World Equestrian Games.

The Princess Royal's daughter and granddaughter of the Queen said her gold medal had been beyond her wildest dreams.

The 25-year-old kept her nerve on Sunday night to claim top spot on Toytown in the three-day eventing competition in Aachen, Germany. She was the first British winner of the competition since 1986.

"It's incredible, it's beyond my wildest dreams," she said. "I'm just so privileged to have been in the team and had the opportunity to ride. It was just amazing.

"It was more nerve-racking because I didn't hear the bell go because of all the cheering, so I had to start the round a little bit late, so that got me going," she said.

"But the horse jumped fantastic and it was an amazing arena to jump in so it was just an awesome experience."

Phillips said her parents - Princess Anne and Captain Mark Phillips - were both "excited and nervous all at the same time".

Asked about her hopes now for the 2008 Olympics in Beijing, she added: "Obviously it's been a massive dream but you have to get everything right leading up to it, and preparation and have the horse power, so it's still a long way away."

On Sunday she dedicated her victory to the memory of her fellow rider and friend, Sherelle Duke.

Ms Duke, 28, a former World Young Rider champion from Portadown, Northern Ireland, died when her horse fell on top of her at a cross-country event at Brockenhurst Park near Southampton last weekend. Her funeral took place on Friday.

The win was a landmark success for Phillips, who has already emulated her mother by winning the European title.

Bookmakers have already slashed the odds on her winning this year's BBC Sports Personality of the Year Award, a prize her mother claimed in 1971.

Phillips moved from fifth to first on Saturday after an impressive performance in the cross-country took her ahead of a German rival. Then, in the show-jumping, she secured the gold by holding steady to remain out in front.

Asked for the Queen's reaction to her triumph, a spokesman for the Royal Family said: "I am sure she would be very pleased for Zara's success."

Both Anne and Captain Phillips were thought to be in Aachen to see their daughter's win.

A leg injury to Toytown ruled her out of selection for the Athens Olympics.