The Olympic Council of Asia has selected the South Korean city of Incheon to host the 2014 Asian Games.
The bid defeated that of India's New Delhi.
"The city which will host the Asian Games in 2014 is Incheon," said Sheik Ahmed Al Fahad Al Sabah, president of OCA's general assembly whose 45 members voted on the venue for the 17th Asian Games.
Members of the winning delegation erupted in cheers and applause at the announcement.
Sheik Ahmed said he would not disclose the breakdown of how the 45 general assembly members voted.
"It has been agreed that ... only the winning city will be announced," Sheik Ahmed said.
"It is a measure which I believe is in the interest of the unity of the Asian continent."
The Asian Games are held every four years among athletes from all over Asia.
The OCA regulates the games under the supervision of the International Olympic Committee.
The South Korean bid was built on the platform that the city of 2.7 million was one of the world's most advanced in information technology infrastructure.
The hosts proposed the games be held between Sept. 19 and Oct. 4, when the average temperature is 20 degrees Celsius.
The bid boasted that the city is one of South Korea's safest, and 65,000 of its citizens have volunteered their services for the games.
The 15th Asian Games were held in Doha, Qatar, in 2006, while the 16th Asian Games will be held in Guangzhou, China, in 2010.
After the announcement in Kuwait, celebration erupted outside the Incheon City Hall, the Yonhap news agency reported.
A crowd of more than 2,000 people cheered despite the cold weather, some hugging each other in joy, as a fireworks display erupted to celebrate the announcement.
President Roh Moo-hyun also sent a congratulatory message, saying that hosting the games will greatly contribute to the development of South Korean and Asian sports.
"I believe it will be an opportunity for Incheon to leap into a hub city in Northeast Asia," Roh said.