The 51-year-old star will be honoured for his contribution to music at this month`s BET Awards in Los Angeles, which are held annually to celebrate African Americans and other minorities who have succeeded in the entertainment world.
The singer will be in good company as previous recipients of the accolade include James Brown, Whitney Houston, Diana Ross and Al Green.
Prince has 10 platinum albums and 30 Top 40 singles to his name and is often cited as a major inspiration for many of today`s top artists.
"Prince is dynamic. Prince is genius. Prince is music," said Stephen G Hill, president of programming, music and specials for BET.
He added that the tribute will give a nod to the singer`s "unique style".
In the past Prince made the headlines for his risqué comments, as well as his frequent alterations of his stage name.
The controversial singer will receive the award on June 27 at a ceremony hosted by Queen Latifah. A host of stars will be performing including rapper Kanye West.