The London Borough of Greenwich is to be granted Royal status, it has been announced.
The "rare honour" of Royal Borough status was confirmed yesterday in the House of Lords by Lord Mandelson, president of the privy council.
It will take effect in the year of the diamond jubilee, the 60th anniversary of the Queen's accession, and the Olympics, both in 2012.
Greenwich is one of the London boroughs that will host the Games.
Lord Mandelson said: "This rare honour is to be bestowed in recognition of the historically close links forged between Greenwich and our Royal Family, from the Middle Ages to the present day."
He said the honour also recognised Greenwich's global significance as the home of the Prime Meridian, Greenwich Mean Time and a UNESCO World Heritage Site.
There are at present three Royal Boroughs: Kensington and Chelsea, Kingston, and Windsor and Maidenhead. They all reflect longstanding Royal associations.
Greenwich council leader Chris Roberts said: "The residents, businesses and the millions of visitors to Greenwich will share in our delight at this wonderful news.
"Greenwich has always taken tremendous pride in the borough's long history of royal connections with Greenwich, Woolwich and Eltham.
"They date back almost 600 years and continue strongly right up to the present day."
The same announcement was made in the Commons by business minister Ian Lucas.
It was welcomed by Sir George Young, shadow leader of the House.
"May I add my congratulations to the London borough of Greenwich on its new auspicious status?" he said.
"It holds a special place in our nation’s history, and it is right for it to be honoured in this way."
Nick Raynsford (Lab, Greenwich and Woolwich) said the Queen has granted "a significant honour" on the borough of Greenwich.
"In his statement, he (Lucas) acknowledged the significant achievements in the area," Raynsford said.
"In view of his business promotion responsibilities, does he agree that 2012, which will be not just the jubilee but the year of the Olympics, in which Greenwich will host many of the most significant events, provides a golden opportunity to promote the area's already successful but further developing industries in the field of leisure, cultural activities, tourism and hospitality."
Ian Lucas said Greenwich is "an extraordinary place".
"The year 2012 will be very special, and I urge anyone from across the UK who has not visited Greenwich so to do.
"It is one of my favourite parts of the UK, and the announcement is richly deserved."
A series of celebrations will be held for the 2012 diamond jubilee, including an extra bank holiday, a jubilee medal and the creation of new cities - city status is in the gift of the monarch.
Bob Russell (Lib Dem, Colchester) said:
"Will the minister elaborate on his reference to national competitions for city status? I recall that, for the golden jubilee, England was disproportionately discriminated against.
"I therefore urge the government to ensure that towns in England are treated more favourably than they were for the golden jubilee."
Lucas said there will be a further announcement on the city status competition, which will set out the criteria in detail.
"I am aware of the strength of feeling in English towns," he said.
"There is also strong feeling in my town of Wrexham—we believe that our town should have city status, too. Like the hon. Gentleman, I may be able to issue a press release after the statement."
In 2002, the year of the golden jubilee, one English town, Preston, one from Wales, Newport, one from Scotland, Stirling, and two from Northern Ireland, Lisburn and Newry, were granted city status.
