Derry will be from the three-month exhibition of the shortlisted artists, as well as the award ceremony to the winner instead.
It is expected that 70000-90000 visitors come to his town.
The Tate, who goes by the Turner Prize, said that outside of London "to win new audiences across the country and to buy larger and more diverse audiences outside the capital.
"It was a part of our mission and pursue the collection and programs to share as much as possible, and promote public understanding and enjoyment of British, modern and contemporary art."
The Foyle MP Mark Durkan said the Turner Prize tourism in a big city would be encouraged.
"This fantastic news and we hope to come as a sign of things."
Declan McGonagle Urban Culture 2013, which was itself nominated for the Turner Prize, said in 1987, as "unique" opportunity for the city.
Start Quote
There is nothing that we can not control, and I think Derry, a good show. "
Quote Willie Doherty, Artist
"The city expects summary of the arrangements for hosting this prestigious event for the city of 2013."
Venue for the price still open, but Mr. McGonagle said the first choice would be former military barracks at Ebrington.
"ON"
Derry to beat competition from Birmingham, Sheffield and Norwich City of Culture for the month of April 2013.
That the city has long been known as a center of modern art.
Derry's most famous artist, Willie Doherty was nominated for the Turner Prize in 1994 and 2003.
He said that the Turner Prize "was a real coup for Derry.
"I think it is wonderful here, but it does not surprise me.
"We have quality work and commitment in art is already there.
"Nothing we can not be satisfied, and I think Derry, a good show."
The city has also held two successful contemporary art in the context of the photo and art gallery.
Derry also hosts one of the first public art project Anthony Gormley remembers a collection of sculptures of the angel of the Lord of the north wall are installed.
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