Born in Romania, the novelist is noted for her books, poems, and essays demonstrating the brutal conditions of life in Communist Romania during the oppressive Nicolae Ceauşescu regime.
The award was announced on Thursday, in Stockholm.
Ms. Müller left Romania in 1987, due to censorship. Moving to Germany, she continues to write of widespread malfeasance and intolerance during Ceausescu's authoritarian rule.
Müller expressed astonishment at the award, but had nothing more to add, according to her publishing house press release.
Numbered among her works are: "The King Bows and Kills", "The Devil is Sitting in a Mirror", "The Land of Green Plums", "Barefoot February", and "The Appointment."
The Ceremony for the award will be held in December, in Stockholm. Having won the award, Müller is entitled to around $1,4oo,ooo.00. Müller is 56.
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