The 48-year-old reclusive pop star will receive a Diamond Award, given to artists who sell more than 100 million albums, at the industry ceremony Nov. 15 in London.
The singer has spent time in Bahrain and Ireland since he was acquitted of child molestation charges in June 2005, making few public appearances.
His 1982 album, "Thriller," won a record eight Grammys and became one of the biggest sellers of all time. Along with the title track, it includes the songs "Billie Jean" and "Beat It." The album has sold over 50 million copies.
Jackson last performed in Britain in 1997.
Monaco hosted the World Music Awards for 15 years before the event moved to the United States in 2004 and 2005.
Actress Lindsay Lohan is scheduled to host this year's event at London's Earls Court Arena with performances from Beyonce, Mary J. Blige, Katie Melua and Andrea Bocelli.
Previous recipients of the Diamond Award include Rod Stewart, Mariah Carey and Celine Dion.