[caption id="attachment_69540" align="aligncenter" width="600" caption="Martina Anderson predicting "massive" revenue boost."]
Derry will hold the All-Ireland Fleadh for the first time in the city's history after the traditional Irish music body, Comhaltas, met in Dublin on Saturday to decide the venue.
Derry beat Sligo to host the festival which attracts up to 300,000 visitors and is worth up to €40 million to the host venue.
Derry was a late confirmation on the shortlist after the Ulster Council of Comhaltas Ceoltoiri Eireann reversed its decision not to support the bid.
The fleadh will now take place in the city during Derry's year as UK City of Culture in 2013.
First Minister Peter Robinson and Deputy First Minister Martin McGuinness welcomed the decision.
Mr. Robinson said: "This is a vote of confidence in Londonderry and it will generate significant cultural and economic benefit to the city and surrounding areas."
McGuinness added: "There have been one or two hurdles along the way but that is behind us and now is the time for everyone to work together to ensure that this is a fleadh which will live long in the memory."
Eibhlín Ní Doherty, chair of Comhaltas' Derry City branch, said it had been a long and drawn out campaign.
"Part of the campaign was difficult and unnecessary but we've remained confident and overcome all the obstacles along the way and we're here at the final stage of the bid."
"I think I was in a state of shock when it was announced," said Ms Ní Doherty.
"I'm sure it was the same for everyone bidding for it, the anticipation, but it was such a sense of relief, I was delighted."
Sinn Féin MLA, Martina Anderson, said the winning bid will be a massive revenue boost for Derry.
"There's an opportunity for £40 million to come into the local economy, as well as 300,000 national and international visitors which will enable us to market Derry and the Northwest," she said.
