Last year, scientists were forced to suspend all Hubble observations after one of gyroscopes, which help orient the telescope, stopped working.
"Prior to this, no stars, quasars, or galaxies had been formed, until objects like this appeared like candles in the dark".
"We don't expect to find many quasars brighter than this one in the whole observable universe".
The quasar is powered by a huge black hole, which is estimated to be several hundred million times bigger than our sun, astronomers will detail in an upcoming paper in Astrophysical Journal Letters.
"It gives us a clue on how to search for "phantom quasars" - sources that are out there, but can not be really detected yet".
"It's the coolest small planet that we know of around a star this bright", said Diana Dragomir, a postdoc in Massachusetts Institute of Technology (MIT) in the United States, who led the discovery.
The worldwide research team found the quasar's exceptional brightness to be caused by gravitational lensing, a phenomenon by which the gravity of objects closer to Earth acts as a magnifying glass to observe objects much farther away in space. Gas falling towards the black hole releases incredible amounts of energy, which can be observed over all wavelengths.
The data readings suggest that the supermassive black hole is accreting matter at an extremely high rate, yet the quasar is producing as many as 10,000 stars per year.
He added: "That's something we have been looking for a long time".
Meanwhile, in some good news, NASA's latest planet hunting probe discovered a new world outside our solar system, orbiting a dwarf star 53 light years away.
The quasar would have gone undetected if not for the power of gravitational lensing, which boosted its brightness by a factor of 50.
Co-author Fabian Walter, of the Max Planck Institute for Astronomy in Germany, said it was a prime candidate for further investigation.
Researchers announced its discovery on January 9 at the American Astronomical Society's winter meeting in Seattle. Fan's team is analyzing a detailed 20-hour spectrum from the European Southern Observatory's Very Large Telescope, which would show gas absorption features to identify chemical composition and temperatures of intergalactic gas in the early universe.
The team also hope to use the Atacama Large Millimetre/Submillimetre Array and Nasa/ESA/CSA James Webb Space Telescope due to be launched in 2021 to look at the supermassive black hole and directly measure the influence of its gravity on the surrounding gas and star formation.