"For anyone who considers cinema as the art of shaping a story in such a way that is both completely personal and universal, Martin Scorsese is an unmatched role model," Berlin film festival directors Mariette Rissenbeek and Carlo Chatrian said on Thursday.
"His films have accompanied our history as spectators and human beings, his characters have lived and grown within us, his view of history and mankind has helped us to understand and question who we are and where we come from."
The Oscar-winner was born in New York in 1942 and is considered one of the world's best-known directors.
His latest historical thriller Killers of the Flower Moon with Leonardo DiCaprio and Robert De Niro has been nominated seven times at the Golden Globes. The festival described it as "one of his greatest achievements."
His most famous works include films such as Taxi Driver and Gangs of New York.
Alongside Cannes and Venice, the Berlinale is one of the world's major film festivals. The next edition is scheduled to take place from February 15-25.
The Honorary Award ceremony will take place on February 20.
At the last edition in February 2023, US director Steven Spielberg received the lifetime achievement award.
In September, Scorsese, together with numerous filmmakers, criticised Minister of State for Culture Claudia Roth in an open letter after she announced a change of leadership at the Berlinale.