The US administrator in Iraq, Paul Bremer, said to a group of journalists: "ladies and gentlemen, we got him!"
He was captured on Saturday night hiding in a tiny cellar in a small village not far from his home town of Tikrit in northern Iraq.
Amazing video footage then showed a tired-looking Saddam Hussein being checked out by US doctors in Iraq.
British Prime Minister Tony Blair has welcomed the news, saying it "removes the shadow" hanging over Iraq.
Already lots of Iraqi people have taken to the streets of Iraq to celebrate his capture and arrest.
Lieutenant General Ricardo Sanchez said that Saddam Hussein was talking to US forces and added that they would continue to question him.
Iraqi Governing Council head Abdel-Aziz al-Hakim is reported to have said that a DNA test had proved the man in custody was Saddam Hussein.
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