The honour is given to individuals whose contributions transcend sports. It will be presented July 15 at the Nokia Theatre in Los Angeles.
Jenner says that for the first time in July she will be able to "stand as my true self in front of my peers."
Jenner confirmed Monday in Vanity Fair magazine that the former Olympian champion and reality star previously known as Bruce Jenner is now known as Caitlyn Jenner.
ESPY Awards show producer Maura Mandt says Jenner's coming out "can help to educate people on the challenges that the transgender community faces."
Previous winners of the award include tennis player Billie Jean King, football player Michael Sam, the late basketball coach Dean Smith, and ABC broadcaster Robin Roberts.