The 23-year-old singer - whose latest album 'Revival' debuted at number one on the Billboard 200 earlier this month - will be presented with the prestigious award at a ceremony in New York on December 11.
Janice Min, co-president and chief creative officer of Guggenheim Media's Entertainment Group, said: ''In the last few months, Selena has broken onto the scene as an adult, and come into her own as an artist with the success of 'Revival'. We want to highlight this moment for a woman who has become a role model for many, a feminist, an independent voice whose new album truly showcases her as a mature artist.''
Janice also revealed that Selena will perform at the event, tweeting: ''Can reveal Selena Gomez to also perform, among 8 @Billboard TV performances incl Lady Gaga, Brittany Howard, more (sic).''
Selena follows in the footsteps of Iggy Azalea, who won the award last year.
Lady Gaga has been named Woman Of The Year for her music achievements and contribution to the industry and will be presented with the award at the ceremony in New York.
The 'Bad Romance' crooner has sold 28 million albums and won six Grammy Awards but spent most of 2015 working as an actress in series 'American Horror Story: Hotel'.
Liz Gateley from female-focused cable network Lifetime - which will televise the Billboard awards in December - said: ''Lady Gaga is an extraordinary artist, emblematic of the strength, courage and fortitude that Lifetime celebrates, and we are thrilled to offer our platform to recognise her in every way she deserves.''
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