YA Fairytale with a Twist

I remember reading this book at least 10 years ago. The setting is inside a fairytale book, and it starts as a typical damsel in distress, rescued by a prince story. But the characters start to realize that they are reliving the same story over and over. The day starts when the book is opened and it becomes night when the book is closed. I want to say there is another character who is actually reading the book and in the end they are trying to escape from the book (possible that the book catches on fire). I can't say for sure if I'm not blending two stories together though with the end, i'm very fuzzy on the details. I've tried a bunch of searches, but the only result is a Jodi Picoult book which is definitely not it.

Thanks!

EDIT:

Found!
It's The Great Good Thing by Roderick Townley

This sounds very like the actual novel of The Neverending Story by Michael Ende

Damsel in distress, characters realizing they're in a book, reader realizing they're influencing the book, times of day for the book being opened and closed. However, I don't remember the book catching on fire at the end. It might, I just don't remember - it's been a long time, and my movie memories make the book memories fuzzy and distorted.

I vaguely recall that the book is destroyed at the end, possibly by fire, but I wouldn't swear to it. I haven't seen the film.

The "two stories" part sounds vaguely like Neverending Story, but not the rest. (And the movie is only the first half of the book, so it's especially distorting in this case.)

I don't think it's the Neverending Story. I remember the main character being female, and I don't remember there being a very complex plot. I also placed the style of writing as being a bit more modern, perhaps someone who was inspired by the Neverending Story though, I can see a few similarities.

I also don't think I've ever read the Neverending Story and I know I definitely haven't seen the movie. I'm sure I'd remember reading such a popular book, and I would have likely insisted on watching the movie after ;)

Parts may fit The Great Good Thing.

Yes, this has to be it! I don't remember them getting out of the book, but it's entirely possible I didn't finish it. I'm pretty sure it's the one :) thanks!!

You're welcome! I hope you enjoy it. :-)