The 30-year-old singer's daughter arrived via scheduled caesarean section at Lenox Hill Hospital in New York City last night.
The couple's close friend Gwyneth Paltrow confirmed the baby's arrival on Twitter, writing: 'Welcome to the world Blue! We love you already.'
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| Baby joy: Beyonce Knowles, pictured in New York last month, has reportedly given birth to a baby girl called Blue Ivy Carter |
Beyonce's 42-year-old rapper husband Jay-Z, real name Shawn Carter, was by her side during the birth, according to E! Online.
A source told Beyonce's hometown newspaper Houston Chronicle that 'mother and baby are doing fine'.
Despite initial confusion the baby was named Ivy Blue, E! reporter Ken Baker later clarified friends of the couple have confirmed the newborn was actually called Blue Ivy.
Paltrow also clarified the name to a confused Twitter follower: 'It's Blue Ivy Carter.'
Celebrities have already started tweeting their congratulations to the couple, including hip-hop mogul Russell Simmons and Rihanna.
Russell posted: 'Congrats to my good friends Beyonce and Jay-Z.'
Rihanna posted: 'Welcome to the world princess Carter! Love Aunty Rih.'
According to the New York Daily News, Beyoncé checked into the Upper East Side hospital under the name Ingrid Jackson.
Beyoncé, who was spotted out with her mother on Thursday night, is said to have booked out the entire fourth floor spending $1.3million it has been claimed.
On Saturday night, deliveries of takeaway food and bottles of red wine were being delivered to the hospital's private wing.
While a spokesperson for the power couple - who are said to be worth $750million - was not available for comment, security is said to have been tightened at the hospital.
Hospital workers are being asked to turn in their mobile phones and security cameras have been covered with packing tape, according to the news site.
At one point, a doctor was heard complaining the heavy security meant he couldn't check up on his patients properly.
The hospital is only a few miles from the couple's TriBeCa, Manhattan apartment, where they spend most of their time while not on tour.
The couple, who have been married since 2008, also recently bought a mansion in Miami Beach, Florida.
Within hours of baby Blue's reported arrival, one fan started up a parody Twitter account called @IvyBlueCarter, with a digitally-created image of what the baby could look like.
Baby rumours reached fever pitch on December 30 with reports that Beyoncé had given welcomed a daughter called Tiana May Carter.
It came after reports suggested that staff at St Luke's Roosevelt Hospital - a private facility in New York - had been told to prepare for a VIP arrival.
But Beyoncé's sister Solange rebutted the rumours by telling fans that the singer had spent New Year's Eve at her house party in Brooklyn.
The 25-year-old confirmed Beyonce was very much still pregnant and tweeted: 'Shout out to my sister for being THE cutest pregnant woman ever!'
The former Destiny's Child singer was also seen out earlier on New Year's Eve dining at the Buttermilk Channel restaurant in Brookly on New Year's Eve with Jay-Z.
Last Thursday, Beyoncé emerged in public for the first time since being last spotted on December 21.
The 30-year-old was seen stroking her tummy as she left a New York office building escorted by a bodyguard and her mother Tina.
Beyoncé announced her pregnancy at the 2011 MTV Video Music Awards back in August, when she arrived on the red carpet cradling her tiny bump.
The singer also showed off her growing tummy after her onstage performance at the same ceremony - unbuttoning her sequinned jacket and rubbing her tummy.
It was originally thought she was due in February, but Beyonce revealed in scenes from her Live At Roseland: Elements Of 4 DVD - which was filmed in September - that she was six months pregnant at the time.
Back in October the former Destiny's Child faced internet rumours that she was 'faking' her pregnancy after an interview she did for Australian TV was posted online.
Critics claimed that when the Texan sat down her bump disappeared.
But Beyonce's rep quickly batted down those rumours saying they were 'foolish'.
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