The 23-year-old Red Bull driver was third in the standings but led from pole and saw other results go his way to become the youngest champion in F1 history.
Ferrari's championship leader Fernando Alonso came seventh, with Red Bull's other title hope Mark Webber eighth.
Lewis Hamilton, who had a slim title chance, finished second and his McLaren team-mate Jenson Button was third. This meant that the new 2010 Driver's Champion celebrated on the podium with the previosu two year's champions flanking him on either side.
It was a dramatic end to an enthralling season and gave Milton Keynes-based Red Bull, who sealed the constructors' championship with Vettel's victory at the Brazilian Grand Prix the week before, their first drivers' title and sparked huge celebration at the factory in Buckinghamshire.
The final standings had Vettel top on 256 points, four clear of Alonso in second, 14 above third-place Webber and 16 in front of Hamilton in fourth.
Congratulations to the Red Bull Racing team from everyone in Milton Keynes - you've made the city very proud! Bring on 2011!
