The QM2, foreground, and the QE2 sail into the English Channel

A special ceremony was attended by Deputy Prime Minister, John Prescott - once a steward on the Cunard Line - on Saturday.

Master Captain Ian McNaught handed over the Boston Cup to QM2 Master Commodore Ron Warwick in front of invited guests.

The cup was given by US citizens to Cunard founder, Samuel Cunard.

Side-by-side

Mr Cunard was presented with the cup in Boston, Massachusetts, after his 1840 Liverpool to Boston crossing in the vessel Britannia - the first scheduled steamship transatlantic crossing.

The QE2, which has held the flagship title for 35 years, departed from New York along with the �550m QM2 last week, amid pomp and ceremony culminating in a firework display.

The sister vessels kept close together as they sailed across the Atlantic, before arriving back at their home port of Southampton on Saturday morning.

The QM2 arrives in New York (Photo by BBC News Online reader Declan Kiely)

The 150,000-tonne QM2, the largest and most expensive ocean liner in history, left Southampton Water on 16 April with 2,600 passengers on board.

She is also replacing the QE2 as Cunard's scheduled transatlantic crossing carrier.

The QE2, which left on its first transatlantic journey on 2 May 1969, was due to sail past the QM2 in Southampton Water, before heading for Germany for a refit.

The older ship will continue to make world cruises and shorter trips.

The QM2 was due to sail in the early evening for New York.

British-born Pat Watt, who now lives in Florida, was one of the many passengers who saw off the QE2.

The 66-year-old, who plans to visit relatives on the Isle of Wight before returning to New York tonight on the QM2, said: "It was magnificent and I'm pleased the ship is carrying on in service doing other cruises.

"It was a wonderful atmosphere on board."