The Shake It Off singer will be handed the gong during Tuesday's awards show at London's O2 Arena - which is the first major indoor music event to take place in the UK since the pandemic began.
Swift, who has recently released a re-recorded version of her 2008 track Fearless, has been recognised for "her immense impact on music across the world and incredible repertoire and achievements to date", organisers said.
The 31-year-old singer-songwriter has also been nominated in the international female solo artist category at this year's BRIT Awards - her sixth nod to date.
A statement from the awards said: "Taylor's career is unparalleled and her music and influence has resonated with millions of people all over the world.
"She's used her platform to highlight many issues globally and recently has been applauded for her work promoting acceptance of the LGBTQ community."
Fearless (Taylor's Version) bagged Swift her seventh UK number one last month, and was her third chart-topping record in less than a year.
She surprised fans in 2020 after releasing both folklore and evermore during lockdown, with both albums featuring a more relaxed, country sound than the cheesy pop of 2019's Lover.
This year's BRIT Awards nominations have seen women dominate the album category, with Arlo Parks, Dua Lipa, Celeste and Jessie Ware all in the running against rapper J Hus.
Some 4,000 people will be in the audience at The O2 Arena in Greenwich on Tuesday night as part of a pilot events scheme launched by the government, with no masks or social distancing necessary.
Jack Whitehall will once again host the bash, with Coldplay, Olivia Rodriguez and Dua Lipa all performing on stage.
You can watch the ceremony live on ITV and the ITV Hub from 8pm on Tuesday.
Source: Sky News