Martin McGuinness said the accolade ensured his native Derry could now look to a brighter future.
Derry/ Londonderry was in the running for the award along with Birmingham, Sheffield and Norwich.
Five members of the bid team travelled to Liverpool to hear the announcement while an event is also planned for the Culture Office in Guildhall Square.
"This is fantastic news for the city and the entire region and I am immensely proud of what has been achieved," Mr McGuinness said moments after the result was announced.
"It represents a fitting reward for the huge amount of work that has been undertaken by all associated with the bid.
"Being here in Liverpool has enabled us all to see first-hand the massive boost that their victory in the European City of Culture has brought.
"The task that now lies before us is to ensure that tonight's announcement will provide a similar catalyst for my home town to avail of the potentially massive benefits culturally, economically and socially for all our people.
"It is an opportunity that Derry and its people will seize with both hands and I am especially looking forward to our return to Derry tomorrow to join in what I know will be a fantastic occasion."
Stormont First Minister Peter Robinson passed on his own congratulations.
"To have beaten off stiff competition from a number of other major UK cities is a tremendous achievement and is reflective of the bid team's enthusiasm and professionalism," he said.
"The north west, and indeed Northern Ireland as a whole, basks in the glory of their achievement.
"This success portrays Northern Ireland in a positive and inspirational light and is indicative of what we can offer the world both culturally and socially.
"I have no doubt that the people of Londonderry will embrace the spirit and ethos of the City of Culture and that 2013 will be a great year for the city, the north west and Northern Ireland."
'Looking forward'
The city's MP, Mark Durkan, said he was delighted by the result.
"I congratulate the whole bid team," he said. "This is a title well won, a job well done.
"We will see Derry looking forward and looking outward but showing all its inner talents and strengths.
"People throughout Ireland and Britain will see a city that nurtures talent - plays, writes, sings, dances, creates and innovates.
"This will be a big opportunity not just to show off Derry's cultural pedigree but also sees our cultural destiny in a way that will provide a platform for our future growth, not least economically."
Stormont Culture Minister Nelson McCausland, Tourism Minister Arlene Foster and East Londonderry MP Gregory Campbell also hailed the city's achievement.
The US government's economic envoy to Northern Ireland, Declan Kelly, said the award would give a real boost to the region.
"Winning the title UK City of Culture 2013 is a tremendous achievement for the city of Derry/Londonderry and for Northern Ireland has a whole," he said.
"This victory is extremely important for the region as Derry/Londonderry's win will have significant economic impact on all of Northern Ireland.
"The UK City of Culture brings the potential for thousands of new jobs as well as much-needed investment and revenue to the region.
"It is precisely because of the economic impact that I became involved early on in the process.
"This is not just about culture, but about long-term economic opportunities and prosperity for the people of Northern Ireland in a broad range of industries including tourism, film, creative media, event management, hospitality, and many more."
