The president, who was awakened to be told he had won, said he was humbled to be selected, according to an administration official. Amid shock and praise from all sides, Obama will make a statement today at 11 a.m. ET from the Rose Garden, administration officials said.
The domestic political consequences are unclear. Supporters hope the prestige associated with the prize will strengthen the president's hand in the health care reform debate. A top Republican from George W. Bush's administration, however, argued that "this will backfire on them for a while" and asserted it was "a gift to the right."
Obama's recognition comes less than a year after he became the first African-American to win the White House. He is the fourth U.S. president to win the prestigious prize and the third sitting president to do so.
Thorbjorn Jagland, chairman of the Nobel committee said he hoped the prize would help Obama resolve the conflicts in Iraq and Afghanistan.
This year's Peace Prize nominees included 172 people -- among them three Chinese dissidents, an Afghan activist and a controversial Colombian lawmaker -- and 33 organizations, the highest number of nominations ever.
The Nobel recipient receives a prize of about $1.4 million.
Congratulations Mr. Obama!