CHARLOTTE (North Carolina): Madelyn Dunham, who watched from afar as her grandson rapidly ascended the ranks of American politics, did not live to see whether he was elected President.

Mrs Dunham, 86, Senator Barack Obama's grandmother, died on Sunday night in Hawaii after a battle with cancer.

Her death was announced by Mr Obama upon arriving here on Monday for a campaign stop on the eve of Election Day.

'She has gone home,' he said. 'She died peacefully in her sleep with my sister at her side, so there's great joy instead of tears.'

Mr Obama has often referred to Mrs Dunham, who helped his single mother take care of him, as the rock of his family and someone who shaped his values.

A little more than a week ago, he left the campaign trail for a trip to Hawaii to say goodbye to the critically ill woman he affectionately calls 'Toot' - short for 'tutu', the Hawaiian word for grandmother.

'This obviously is a little bit of a bittersweet time for me,' Mr Obama told the outdoor rally under drizzly rain, as tears rolled down his cheeks and his voice choked up.

'She was somebody who was a very humble person and a very plain-spoken person,' he said. 'She was one of those quiet heroes that we have all across America. They're not famous. ... But each and every day they work hard.'

Mr Obama learned of his grandmother's death at 8am on Monday, aides said, but carried through with a morning rally in Florida.

Mrs Dunham helped raise him from the age of 10, while his mother was working in Indonesia.

He spoke of her often on the campaign trail, mentioning that she worked in a bomber assembly plant during World War II. Later, she worked as a secretary in a bank and was eventually promoted to vice-president.

Mr Obama has often credited her with instilling in him the Mid-western pragmatism she acquired as a Kansas native.

He said after his Hawaii trip that he had been flooded with cards, flowers and well-wishes from around the country, and he regularly thanked crowds at his campaign rallies for their prayers.

'It brought our grandmother and us great comfort. Our grandmother was a private woman, and we will respect her wish for a small private ceremony to be held at a later date,' the Illinois senator and his half-sister, Ms Maya Soetoro-Ng, said in a statement.

In a statement, his Republican rival John McCain and his wife, Cindy, offered prayers for Mr Obama and his family.

'We mourn his loss and we are with him and his family today,' Mr McCain later said at a rally in Roswell, New Mexico.

REUTERS, NEW YORK TIMES