The Nobel Peace Prize had gone "to the people who most deserve it", according to the Northern Secretary, Dr Mo Mowlam. She praised Mr John Hume and Mr David Trimble as "two politicians who over the years have shown real courage to build the peace process". The award will be presented to both men at a ceremony in Oslo on December 10th.

Dr Mowlam said it was "a good day for Northern Ireland". She was sure it would help the peace process. It was an award for the people of Northern Ireland. "It is them and their leaders who have shown the courage."

In a statement last night, Mr Trimble said he was "extremely honoured" by the award to himself and Mr Hume. "I am accepting the award as an acknowledgment of the hard work, commitment and continuing support of my party colleagues.

"I also acknowledge the achievement of other constitutional parties in Northern Ireland and the British and Irish governments, and the support and encouragement of the international community. But most importantly, this award reflects the democratically-expressed wishes of the people of Northern Ireland for lasting peace and a better future for all our people. That is the peace prize we all seek. It is to create that more prosperous future that Seamus Mallon and myself have been in North America, seeking trade and investment for Northern Ireland."

Earlier, Mr Hume gave his reaction. "This isn't just an award to David Trimble and myself, it's an award to all the people of Northern Ireland and to all the parties that have participated in the peace process and to both governments. It's a very strong and clear endorsement of us all."

Mr Trimble was in Denver, Colorado, as part of an industrial promotion tour when the news broke. The Ulster Unionist Party issued a statement by Mrs Daphne Trimble expressing her "delight" over the award to her husband and Mr Hume.

"The award reflects the work of David and his colleagues within the Ulster Unionist Party and the other constitutional parties in Northern Ireland who have worked so hard for the last 30 years for a lasting political settlement. I congratulate John Hume on his award. This award marks the progress that has been made to securing what we hope will be a better future for our children," Mrs Trimble said.

The UUP chief whip in the Assembly, Mr Jim Wilson, also welcomed the award to his party leader, who had "invested heavily in the ongoing political process". Mr Wilson added: "His work is not finished, indeed it is just beginning."

In New York, the Sinn Fein president, Mr Gerry Adams, said he warmly welcomed the fact that the prize was going "to his friend John Hume and to the Ulster Unionist leader, David Trimble". Mr Hume had "played a pivotal role in the peace process["] which would never have come about without his courage and vision.

"Despite great personal attacks on his integrity and humanity, John never wavered in his commitment to peace. No one deserves this accolade more."

Mr Adams said he wished Mr Trimble well. "The peace prize carries with it enormous responsibility. The focus must be for all of us to push ahead through the speedy implementation of the agreement."

The Sinn Fein chief negotiator, Mr Martin McGuinness, said the award was a "proud day for the people of Derry" and a source of "personal joy for myself as a Derryman and politician".

Congratulating Mr Hume, he said would also like to commend Mr Trimble. The recognition bestowed on both men was also a recognition of "the great work of many others who made the peace process happen, particularly Gerry Adams".

Ms Carmel Hanna, an SDLP Assembly member for South Belfast, was "delighted" by the award to Mr Hume. "Not just for the last few years, but for the whole of his public life, he has been unique among Irish politicians in his single-minded pursuit of peace in Ireland."

Mr Hume was "not only the greatest living Irishman, he has staked his claim to be considered one of the great Irishmen of the millennium and certainly a great European".

The Presbyterian Moderator, Dr John Dixon, wrote to Mr Hume and Mr Trimble congratulating them. "We are all indebted to you for the leadership you have shown and the risks taken to move our community towards peacefully creating a new society," he said.