The other people in contention for the title were Apple CEO Tim Cook, Egypt's post-revolutionary President Mohammed Morsi and atomic physicist Fabiola Gianotti.

Person of the year, or what used to be called "man of the year", acknowledges what the magazine considers to be the world's biggest newsmaker, or influential mover.

Since the tradition started in 1927, US presidents have systematically featured, as have big names like Microsoft's Bill Gates. But more symbolic winners, such as "US scientists" in 1960, have also appeared.

Since the leader of Iran's Islamist revolution, Ayatollah Khomeini, made the cover in 1979, the magazine has tended to shy away from picks that might upset its mostly US readership. A notable absence was al-Qaida founder Osama bin Laden in the wake of the Sept 11, 2001, terror attacks.

Obama could not be a less controversial choice.

Time said he swept to the head of the pack because of his ability to grasp the demographic and social changes shifting the US.

"The truth is," Obama told Time, "that we have steadily become a more diverse and tolerant country that embraces people's differences and respects people who are not like us. That's a profoundly good thing. That's one of the strengths of the country."

Time said Obama was about "convergence of past and future" and said his second term would see him being "more assertive, more personal, more willing to risk his political capital for what he truly believes".

AFP-AP

Related stories:

Obama beats Malala in 'person of the year' race

Obama to veto Boehner's 'Plan B': WH

Obama seeks gun proposals to curb violence by January

Obama re-elected as US president - TV networks