Oslo: Ethiopian Prime Minister Abiy Ahmed has won the 2019 Nobel Peace Prize for his peacemaking efforts with Eritrea.

Ethiopia and Eritrea, longtime foes who fought a border war from 1998 to 2000, restored relations in July 2018 after years of hostility.

This year's Nobel Peace Prize has been awarded to Ethiopia's Prime Minister Abiy Ahmed. Credit:AP

The prize, worth nine million Swedish crowns, or around $A1.35 million, will be presented in Oslo on December 10.

"Ethiopian Prime Minister Abiy Ahmed Ali has been awarded this year's Nobel Peace Prize for his efforts to achieve peace and international cooperation, and in particular for his decisive initiative to resolve the border conflict with neighbouring Eritrea," the Norwegian Nobel Committee said in its citation.