Mr Edwards, whose wife has terminal cancer, said the affair in 2006 was with a film-maker whose company made documentaries for his campaign.
He denied he was the father of Rielle Hunter's child, born in February, but said he had not taken a paternity test.
He confessed to the affair in an interview with US broadcaster ABC News.
In a statement released following his television appearance, Mr Edwards said he had made "a serious error in judgment".
He said he was "ashamed" of his actions, and that he had informed his wife about the affair in 2006 and had asked for her forgiveness, the statement said.
Aug 9, 2008
of john edwards admits affair
Ex-senator Edwards admits affair: Former Democratic US presidential hopeful John Edwards has admitted that he had an extra-marital affair and that he lied about it during his campaign.
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