Awlaki was killed by a US drone strike in the Jawf province of Yemen, along with several of his associates.
He is believed to have taken a leading role in a number of attempts to attack the US, including plots to blow up US airliners.
Awlaki, who is of Yemeni descent, has been on the run in Yemen since 2007.
Mr Obama said that as a leading figure in al-Qaeda in the Arabian Peninsula (AQAP), Awlaki had taken the lead in "planning and directing efforts to murder innocent Americans" and was also "directly responsible for the death of many Yemeni citizens".
The death "marks another significant milestone in the broader effort to defeat al-Qaeda and its affiliates", he said.
He also paid tribute to the work of both the US intelligence agencies and Yemeni security officials who had co-operated on the killing.
"This is further proof that al-Qaeda and its affiliates will find no safe haven anywhere in the world," he said, but warned that AQAP "remains a dangerous though weakened terrorist organisation". Read more
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