Organisers said he was awarded the 2013 prize for his lifelong work advancing spiritual principles such as love and forgiveness that have helped to liberate people around the world.
The former Anglican archbishop of Cape Town joins a distinguished group of 42 previous recipients.
Archbishop Tutu will receive the prize at the Guildhall in London on 21 May.
The 81-year-old veteran peace campaigner said: "When you are in a crowd and you stand out from the crowd it's usually because you are being carried on the shoulders of others.
"I want to acknowledge all the wonderful people who accepted me as their leader at home and so to accept this prize in a representative capacity."
