"Tiger has done more for the game than anyone ever thought possible," said PGA Tour commissioner and World Golf Foundation Board member Jay Monahan, as quoted by BBC Sport.
Woods has bagged 15 majors and has a joint record 82 times on the PGA Tour.
"This past year has been such an incredible journey and the support I've received from my family, friends and fans has been overwhelming," said Woods. "This achievement is the ultimate recognition to never give up and keep chasing."
Woods won the Zozo Championship last year by three shots to make golfing history after he saw off favourite Hideki Matsuyama.
He won the Masters at Augusta last April for his 15th major, but first since winning the US Open in 2008.