The US President Mr George W Bush announced last night he would approve federal funding for limited medical research on stem cells extracted from human embryos.
He made the announcement during his first televised address to the US public.
The decision comes after months of deliberation over what US officials called a moral, scientific and political dilemma.
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President George W. Bush after his address to the nation on stem cell research
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Mr Bush described the process as "unusually deliberative". It is seen as an affront to Christian conservatives and anti-abortion activists, who comprise a core support base for the President.
As a presidential candidate, Mr Bush opposed federal funding for the research.
But polls show a majority of Americans support the funding, and advocates for a range of patients groups and scientists had lobbied hard for it.
Compromises reached would allow for research on a limited number of stem cell lines, provided there was strict federal oversight and specific consent from the parents who created them.
At issue was whether the government should support research on stem cells removed from embryos that are left over from fertility treatments.
Supporters of such research see great potential for medical treatments. Opponents insist it is wrong to use human embryos for research.
Stem cells are created by removing an inner cell mass from a five- to seven-day-old embryo. The procedure kills the embryo.
AP