Riccardo Muti, age 69, has also been conductor of the Maggio Musicale Fiorentino, the Philharmonia Orchestra in London, the Philadelphia Orchestra and Teatro alla Scala.
"Maestro Muti is being recognized for his extraordinary contributions in opera and concert, as well as his enormous influence in the music world both on and off the stage," the jury said.
He is the second winner of the prize from the Birgit Nilsson Foundation, established after the 2005 death of Nilsson, one of the greatest Wagnerian sopranos.
Muti said he was moved when he heard he had been chosen for the "distinguished" award.
"I was deeply touched by the jury's accolade, all the more so given my profound admiration for this unique and extraordinary artist, both as an incomparable musician and as a great interpreter," Muti said in a a statement.
Foundation President and close friend of Nilsson, Rutbert Reisch, said Muti "personifies and exemplifies all of the qualities that were so important to Birgit Nilsson — extraordinary work, dedication and passion for music over many decades."
Muti will receive the prize in the presence of Sweden's King XVI Gustaf and Queen Silvia at the Royal Opera in Stockholm on Oct. 13.
The prize was first awarded to Spanish tenor Placido Domingo in 2009, a laureate Nilsson had picked herself.
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