HONOLULU -- Sen. Barack Obama's grandmother died on Monday, according to a statement released by his Hawaii campaign.

Madelyn Dunham, 86, died at 3 a.m.

Here is the written statment from Obama and his sister Maya Soetoro-Ng on the death of Madelyn Dunham:

"It is with great sadness that we announce that our grandmother, Madelyn Dunham, has died peacefully after a battle with cancer. She was the cornerstone of our family, and a woman of extraordinary accomplishment, strength, and humility. She was the person who encouraged and allowed us to take chances. She was proud of her grandchildren and great-grandchildren and left this world with the knowledge that her impact on all of us was meaningful and enduring. Our debt to her is beyond measure.

Our family wants to thank all of those who sent flowers, cards, well-wishes, and prayers during this difficult time. It brought our grandmother and us great comfort. Our grandmother was a private woman, and we will respect her wish for a small private ceremony to be held at a later date. In lieu of flowers, we ask that you make a donation to any worthy organization in search of a cure for cancer."

Maya Soetoro-Ng added the following" "My grandmother made her home on these islands since 1959, and she loved the people of Hawaii. We want to thank Tutu's friends and extended ohana for the outpouring of aloha over the past few weeks. We received cards, letters, and gifts that helped lift her spirits, and we are very grateful for everybody's support."

Obama took a break from his campaign two weeks ago to visit Dunham at her Beretania Street apartment. He visited just days before she turned 86.

She was suffering from cancer and recovering from a broken hip when he visited, sources said.

Obama called her "Toot," short for tutu, or grandmother.

Madelyn Dunham was one of the first women vice presidents at the Bank of Hawaii. Co-workers said she was a well respected business woman.

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Political historians said it is the first time ever a presidential candidate has left the campaign trail so close to Election Day.

"She poured everything she had into me." - Sen. Barack Obama

Friends said Obama's urgency to get here could be fueled by one of his greatest regrets: was not being in Hawaii for the death of his mother, Ann Dunham, who died at age 52 of ovarian cancer.

He said he did not want to make the same mistake twice.

In a campaign ad this year, Obama described Madelyn Dunham as the daughter of a Midwest oil company clerk who "taught me values straight from the Kansas heartland" -- things like "accountability and self-reliance. Love of country. Working hard without making excuses. Treating your neighbor as you'd like to be treated."

Obama recognized Madelyn Dunham when he accepted the Democratic presidential nomination at the party's convention in Denver.

"She's the one who taught me about hard work. She's the one who put off buying a new car or a new dress for herself so that I could have a better life. She poured everything she had into me," he said.

Obama spoke publicly for the first time since Dunham's death at a rally in North Carolina.

"Now, I want to say first of all Sen. McCain and his wife Cindy McCain issued a statement offering their condolences, and they were extraordinarily gracious. I want to thank them for that just as I want to thank everybody else whose been praying for us and supporting our family during this difficult time," Obama said.

"She passed away peacefully, knowing that he was ahead, knowing that she had done her best for and with him and the best qualities and values that she had instilled in him were made manifest in this campaign. She was very, very, very proud of him," U.S. Rep. Neil Abercrombie said.

Abercrombie, honorary chairman of Obama's Hawaii campaign, said private services will be held for Dunham in Hawaii after the election.

Among those who remembered her fondly was U.S. Rep. Mazie Hirono, who worked for Dunham as a temp at Bank of Hawaii in the early 1970s.

"She was really ahead of her time then. I recognized that and I admired her for it," Hirono said.

University of Hawaii professor Alice Dewey is a longtime friend of the Obamas and remembers Madelyn Dunham's tenacity.

"She was a very determined person as you began to get to know her she knew her mind and followed her principles," Dewey said.

Obama's Hawaii campaign headquarters has been flooded with hundreds of get-well cards and well wishes for Madelyn Dunham since his visit.