According to Contactmusic, the 62-year-old fashion designer will take home the honour at the annual bash in partnership with Swarovski, which celebrates the star's work with the fashion house set up by her late brother Gianni Versace in 1978.
She feels "truly honoured" to be receiving the title, and to be continuing her sibling's 20-year legacy.
She noted, "I am truly honoured to be collecting the Fashion Icon Award at the Fashion Awards 2017. For 40 years my brother and I have done what we love and that is a legacy I am honoured to continue and uphold. We have celebrated empowerment, joy and of course glamour. We have championed a community of people who share our values and together with them have created truly iconic images in the world of fashion."
The mogul is "truly humbled" by the success of the label over almost 40 years, and she is thankful for the support she has received over the years.
"I am truly humbled by how Versace has been embraced across the decades, across the world and across the generations. Thank you to the industry for your support of us, thank you to my team for their loyalty and incredibly hard work, thank you to my family and friends who have supported me more than they can know and thank you to the genius that was my brother Gianni. His incredible spirit is in everything we do and everything we stand for," noted Versace.
BFC council chairman Natalie Massenet claimed Versace was the best, if not only, choice to receive the award.
"She has shown incredible strength and dedication to the industry and has continued her brother's legacy through her remarkable work. What I admire the most about her is her ability to make women look and feel powerful. I could not imagine a better recipient of this award, especially as this year marks such an important date for Versace," explained Massenet.