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Three-time Grammy winner Shankar, who died Tuesday in California, is among seven artists including Carole King and the Temptations named as Grammy's Lifetime Achievement Award honorees, the Star Online reported.
"He was selected before his death and notified last week he was receiving the honour,"
a Grammy spokeswoman, Stephanie Schell, said.
"As one of the world's most renowned sitar players, (Shankar) is a true ambassador for international music," the recording academy said in its brief biography of the Indian musician, alongside those of the other honourees.
"As a performer, composer, teacher and writer, he is considered a pioneer in bringing Indian music to the West," it added.
Shankar died Tuesday in southern California at the age of 92, after failing to recover from surgery at a hospital in La Jolla, near San Diego last week.