“Tonight, in this election, you, the American people, reminded us that while our road has been hard, while our journey has been long.
"We have picked ourselves up, we have fought our way back, and we know in our hearts that for the United States of America, the best is yet to come.”
He added: "The task of perfecting our nation moves forward. It moves forward because of you. We are an American family and we rise or fall as one nation".
Earlier as US TV networks reported he had won, Obama tweeted: "This happened because of you. Thank you."
Winner ... Obama and family
Smile ... Obama was showered with confetti
Party ... confetti falls on Barack Obama and his family as they thank crowds
The remaining ballots in Florida are set to be counted tomorrow morning as long queues at the polls delayed voters.
Romney made a concession speech in front of his supporters in Boston congratulating Mr Obama. He said: "I wish all of them well but particularly the President, the First Lady and their daughters."
"This is a time of great challenges for America. I pray that the President will be successful in guiding our nation."
He added: "I believe in America, I believe in the people of America. And I ran for office because I'm concerned for America. This election is over but our principles endure.
Speech ... President thanked supporters
Victory ... Barack Obama hugs his vice-president Joe Biden after election win
Father ... Obama with daughters
More than 120 million Americans are thought to have voted, with turnout high in the 11 pivotal swing states — Colorado, Florida, Nevada, Wisconsin, Iowa, Ohio, New Hampshire, Virginia, North Carolina, Michigan and Pennsylvania.
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