Trump was nominated by two right-wing members of Norway's Progress Party, which advocates for limited immigration and lower taxes.
The lawmakers told Norwegian wire service Norwegian News Agency that Trump "had taken a huge and important step" toward peace with North Korea and disarmament.
The most recent Americans to win the Peace Prize were then-President Obama in 2009 and former Vice President Al Gore in 2007.
Last month, 18 Republican lawmakers sent a letter to the Nobel Committee to pitch Trump for the Peace Prize because of his efforts to disarm North Korea.
The Norwegian Nobel Committee said earlier this year that it had received 329 nominations for the 2018 award, the second-highest number to date.
Trump himself has mused about earning the Nobel saying "everyone thinks so, but I would never say it", when asked about the possibility of the prize last month.
Now that the Trump-Kim summit has come to a successful end, people have started guessing whether this breakthrough in relations between the United States and DPRK will bring its leaders the Nobel Peace Prize. "Divisive and irresponsible from a presidential hopeful".
US President Donald Trump attends a G7 and Gender Equality Advisory Council meeting as part of a G7 summit in the Charlevoix city of La Malbaie, Quebec, Canada.
The Norwegian Nobel Committee's vice-chair, Henrik Syse, wrote in a blog in December, 2016, that: "President-elect Donald Trump has, with his rhetoric, lowered the threshold for moral decency so far it is downright scary".
Asle Toje, appointed to the committee this year, wrote an opinion piece in a Norwegian newspaper in 2017 telling Norwegians they were too negative towards Trump. His headline: "Trump is no Hitler".
Nominations for this year's prize also formally closed on February 1, before the summit was agreed.
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