Derry has been selected to host the annual all-Ireland fleadh next year, the first time the event will take place in Northern Ireland.
The 31-member central executive of Comhaltas Ceoltoiri Éireann met in Dublin today to decide between Derry, Sligo and Ennis for an event that attracts up to 300,000 visitors and is worth €40 million to the host venue.
Derry will also be the UK City of Culture 2013.
Some Comhaltas members in Ulster had initially opposed the fleadh going to Derry as they did not want it linked to a year-long cultural festival that has "UK" in its title and there were also concerns about the threat from dissident republicans.
Sinn Féin MLA and junior minister in the Northern Assembly, Martina Anderson, who represents the Derry area and attended the vote, hailed the decision.
"When you consider the largest cultural festival anywhere in the world is going to take place in Derry, it is a great honour for all of us," she said.
She said the decision followed lobbying by politicians and senior police officers, who she said had reassured organisers over any security concerns.
Northern Ireland First Minister Peter Robinson said the decision was a vote of confidence and would "generate significant cultural and economic benefit to the city and surrounding areas".
"It is a proud and historic city with a rich heritage and the hosting of this event will be one of the highlights of the UK City of Culture celebrations."
Deputy First Minister Martin McGuinness said: “This is a great day for Derry and the north and I wish to thank all those who have played a part in securing this outcome.
"I commend Comhaltas for this leap of faith in the city - it was no doubt a difficult decision but Derry had a compelling bid".
The event is being held in Cavan this year.