Council member Dara Noor al-Din told The Associated Press that the council was informed of the former dictator's capture in a telephone call from L. Paul Bremer, the U.S. administrator for Iraq (news - web sites).
"Bremer has confirmed to the Governing Council that Saddam was captured in Tikrit," Noor al-Din said. "He spoke on the phone to several members, including Ahmad Chalabi."
Chalabi is a leading member of the council who has close links to the U.S. administration of President George W. Bush (news - web sites).
Another Governing Council member, Jalal Talabani, was earlier quoted by Iran's official news agency, IRNA, as saying Saddam had been captured in Tikrit. Talabani is currently traveling in Spain.
Earlier in the day, rumors of the capture sent people streaming into the streets of Kirkuk, a northern Iraqi city, firing guns in the air in celebration.
"We are celebrating like it's a wedding," said Kirkuk resident Mustapha Sheriff. "We are finally rid of that criminal."
"This is the joy of a lifetime," said Ali Al-Bashiri, another resident. "I am speaking on behalf of all the people that suffered under his rule."
In Baghdad, the U.S.-led occupation notified reporters that a "very important" announcement will be made at a news conference scheduled for 3 p.m. (1200 GMT) but did not give details.