A small group of highly-trained American operatives took possession of Osama's remains in Pakistan, according to CNN.
Osama bin Laden is wanted for a number of terrorist activities, however he was not on the FBI wanted list in connection with the September 11 2001 attacks, despite being widely credited with being responsible for them.
The search for bin Laden gained momentum in October 2001 when then-President George W. Bush declared he was wanted "dead or alive."
The search for the al-Qaeda leader however has been patchy at best with little commitment shown by U.S. forces to track him down.
The timing of the assassination is curious coming on top of an attempted assassination of Libyan leader Colonel Gaddafi a day earlier.
President Obama, however, appeared relieved at the development. "Justice has been done," he told the world.
Shortly after the president's address, a growing crowd began to gather outside the White House in Washington, waving the American flag and celebrating.
Obama appears to have been informed of the operation to capture or kill Osama Bin laden from last week when the CIA began to learn of his whereabouts.
According to a US military official, Bin Laden's body is being handled according to Islamic practise and tradition.
Mirroring President Obama's warning that this does not mark the end of the 'war on terror', the US State Department has warned all Americans abroad to be cautious of anti-American violence in response to the news of Bin Laden's death.
It is unclear whether the United States will raise its terror alert level.