Mr Obama won the prize in a surprise decision just nine months after becoming president.

Australian Prime Minister Kevin Rudd and Opposition Leader Malcolm Turnbull congratulated MrObama on the win, which recognised his work on nuclear disarmament and diplomatic engagement.

But critics say the US leader has not achieved enough to join the ranks of Nelson Mandela, Mother Teresa and Burma's Aung San Suu Kyi.

South Australian Liberal senator Simon Birmingham said the decision was a mistake. ''I think it's slightly embarrassing for probably both him and for the status of the Nobel Peace Prize,'' he said.

''To think that in less than a year he has made any notable difference to world peace is hard to fathom.''

The award should have gone to Zimbabwean democracy advocate Morgan Tsvangirai or to Aung San Suu Kyi, both of whom had paid a heavy price lately in their pursuit of peace, Senator Birmingham said.

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