The singer was hailed as "one of the most exciting and inspiring artists in the industry" by the publication's editorial director, Bill Werde.
"Katy Perry broke into the industry not even five years ago, and has already accomplished more than most artists can hope for in an entire career," femalefirst.com quoted Werde as saying.
"We are thrilled to celebrate these incredible achievements and her amazing past 12 months by presenting her with the Billboard Woman of the Year Award. With what seems like a never-ending supply of record-breaking, chart-topping hits, coupled with her unique and fresh style, Katy Perry is hands-down one of the most exciting and inspiring artists in the industry today," he added.
The annual event celebrates the most powerful and talented women in the music business and the previous recipients includes Taylor Swift, Fergie from the Black Eyed Peas and Beyonce Knowles.
This year's event will take place in New York on Nov 30 where Perry will receive her award.