The prize has been created by BPI and will become part of the BRIT Awards. Sit Elton will receive his award at an inaugural event in London on 2 September.
According to the organisers, the evening will see a live performance from the star as well as an interview and special guest performances.
Sir Elton John said: ‘It’s a tremendous honour and a real thrill for me to have my work acknowledged in this way, and I’m really looking forward to participating in what promises to be a very special occasion.’
Geoff Taylor, BPI and BRIT Awards Ltd chief executive, said: ‘The BRIT Awards has recognised many exceptional artists whose music has connected with millions of fans.
‘A few of these artists, such as Sir Elton John, have achieved such a level of artistic creativity and originality, critical acclaim, global recognition and popular success that they deserve to be recognised as true Icons of our cultural life.’
The singer songwriter is expected to play songs from across his career as well as from new album, The Diving Board, which will be released on 16 September.