The coveted prize has been awarded jointly to John B Gurdon of the United Kingdom and Shinya Yamanaka of Japan "for the discovery that mature cells can be reprogrammed to become pluripotent".
The prize committee at Stockholm's Karolinska Institute announced the news.
The committee says the discovery have "revolutionized our understanding of how cells and organisms develop."
The two scientists discovered that mature, specialised cells can be reprogrammed to become immature cells capable of developing into all tissues of the body. Their findings revolutionised understanding of how cells and organisms develop.
The medicine award was the first Nobel Prize to be announced this year. The physics award will be announced Tuesday, followed by chemistry on Wednesday, literature on Thursday and the Nobel Peace Prize on Friday.
The economics prize, which was not among the original awards, but was established by the Swedish central bank in 1968, will be announced on Oct. 15.