The inaugural event will be held in central London on Sept. 2 and will be broadcast on U.K. commercial network ITV that month.
BPI and BRIT awards chief executive Geoff Taylor said the honor was dreamed up with broadcast partners ITV to "provide the ultimate tribute to these musical superheroes, which not only recognizes their unique achievements but which is also spectacular entertainment."
The annual BRIT awards ceremony is the U.K.'s largest music awards show.
John described the inaugural award as "a tremendous honor and a real thrill" to have his life and work recognized.
"I'm really looking forward to participating in what promises to be a very special occasion," said the legendary performer.
At the ceremony, John is expected to perform some of his best-known tunes as well as new material from his forthcoming album The Diving Board.
John recently canceled his European tour and a Hyde Park gig because of appendicitis.