The pop singer will be given the award, as well as Russian punk band Pussy Riot and writer Christopher Hitchens, by Yoko Ono.
Pop superstar Lady Gaga will be honored for her work campaigning for equality for gay, lesbian, bisexual and transgender people.
Sharing a peace prize in memory of John Lennon, the bisexual singer has been chosen long with four others to receive the biennial LennonOno Grant For Peace.
Other nominees include Russian punk band Pussy Riot, who were jailed for singing a pro-gay, anti-Putin song in a Moscow cathedral, and the late influential liberal writer Christopher Hitchens,
Gaga is expected to accept the award and a donation for her anti-bullying charity Born This Way from Lennon’s widow, Yoko Ono.
The ceremony will take place in Reykjavik, Iceland, on 9 October – the birthday of Lennon and his son, Sean.
In the past, right-wing extremists have accused the ‘You & I’ singer of turning kids gay with her foundation.
Mission America’s Linda Harvey said the entertainer’s Born This Way Foundation is leading children to a ‘self-destructive path’ by ‘embracing homosexuality’ as part of its anti-bullying efforts.
In a statement on Friday (5 October), Ono said Gaga is ‘one of the biggest living artists of our time’, and said the singer’s second album Born This Way altered ‘the mental map of the world.’
Check out Lady Gaga singing John Lennon’s Imagine here: