By Steve Ginsburg

NEW YORK (Reuters) - Derek Jeter surpassed Lou Gehrig as the New York Yankees' all-time hit leader with a single against the Baltimore Orioles Friday.

The 10-times All-Star shortstop lined the base-hit to right field in the third inning against Orioles right-hander Chris Tillman as the crowd of nearly 47,000 roared its approval.

"I never imagined, I never dreamed of this," Jeter, who grew up in nearby New Jersey as a Yankees fan, told reporters. "My dream was always to play for the team.

"Once you get here you want to stay and try to be consistent. This really wasn't a part of it. The whole experience has been overwhelming."

The entire Yankees team joined the 35-year-old Jeter at first base after the 2,722nd hit of his 15-year career.

"My team mates coming out, I didn't know they were going to do that," said Jeter, whose mother was in the crowd, wiping away tears. "It caught me off guard."

On a rainy night, thousands of camera flashes lit up Yankee Stadium each time Jeter swung the bat, fans wanting to capture the moment. When he landed on first and the Yankees began streaming out of the dugout, the flashes started again.

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"For those who say today's game can't produce legendary players, I have two words: Derek Jeter," Yankees owner George Steinbrenner said in a statement. "Game in and game out he just produces.

"As historic and significant as becoming the Yankees' all-time hit leader is, the accomplishment is all the more impressive because Derek is one of the finest young men playing the game today."

"That combination of character and athletic ability is something he shares with the previous record holder Lou Gehrig."

Gehrig's career ended prematurely when the effects of amyotrophic lateral sclerosis, or ALS, took its toll on the Hall of Famer, known as The Iron Horse for his durability. The disease is now commonly referred to as Lou Gehrig's disease.

Jeter has spent his entire career with the Yankees and is a four-time World Series champion.

(Editing by Julian Linden)