This paper presents a novel control strategy for a high penetrated wind based hybrid Remote Area Power Supply (RAPS) system. The proposed RAPS system consists of a Permanent Magnet Synchronous Generator (PMSG) based variable speed wind turbine and a battery energy storage system with a dump load for DC bus voltage control and a diesel generator as a back-up supply. An integrated control approach based on active and reactive power balance of the proposed RAPS system has been proposed and developed with a view to regulate the voltage and frequency within an acceptable bandwidth. The proposed integrated control algorithm is implemented by developing controller for the individual system components in the RAPS system including wind energy conversion system, diesel generator, battery storage and dump load while coordinating their responses to achieve optimal operation. The optimised operation for the proposed RAPS system is realised by operating the wind turbine generator on its maximum power extraction mode while restricting the operation of diesel generating system at low-load conditions. In addition to the detailed model, which associated with non-linear high order characteristic of each system components, a linearlised model of the RAPS system is presented with a view to compare the active power sharing among the system components. The suitability of the proposed control strategy has been tested under varying system conditions including fluctuating wind and variable load.