Hillsong's worship band won it's first Grammy award in New York on Sunday night for the song What A Beautiful Name.

The group, formed out of Sydney's Hillsong megachurch, has had huge success across the world for their Christian music and concerts and won the prize in the best contemporary Christian music performance/song category.

The award is given to artists and songwriters of new contemporary Christian pop, rap/hip-hop or rock singles.

'This is an absolutely incredible honour,' said Brooke Ligertwood, who accepted the award along with Ben Fielding on stage inside Madison Square Garden, New York, on Sunday.

'We get to sing and write about the most incredible name of all that has transformed our lives. It is the most enormous privilege. We want to thank our entire recording team, our church, our senior pastors Brian and Bobby Houston, our entire incredible team.'

Ben Fielding told the audience at the ceremony: 'No matter how far or how close you feel to God, no matter how great the distance, his love is greater, his name is more powerful, more wonderful, more beautiful than any other.

'May this all glorify the name above every other name, the name of Jesus.'

Since 1992, Hillsong Worship has created 24 albums with more than 275 songs. According to the Hillsong Church, the band's song are sung by an estimated 50 million people in 60 languages.