GPS for quadcopter robot

I have seen that the Arduino can be used to handle flight control algorithms but I haven't seen one with a gps, only 3 axis accelerometer for attitude control and radio inputs to control position.

I would like to build an autopilot system capable of attitude and position control which would require 3 axis accelerometer and a gps module.

My question is will the Arduino be ok for this? My gut tells me that it should be ok but I'm not really sure. Also can anyone recommend a particular gps for this task.

The Ardupilot software package uses a GPS.

Try looking at the "MultiWii" firmware. It can be configured for nearly every accelerometer, gyro, gps, etc. on the market.