Blatter made the announcement at a ceremony in Felcsut, a village near the capital which is home to the Ferenc Puskas Football Academy, in the presence of Erzsebet Puskas, the widow of the striker who died three years ago at the age of 79.
"Ferenc Puskas was not only a player with immense talent who won many honours, but also a remarkable man. FIFA is therefore delighted to pay tribute to him by dedicating this award to his memory," Blatter said.
Puskas, a talismanic member of the Hungarian national "Golden Team" during the 1950s, was one of the most prolific forwards of all time, scoring 83 goals in 84 games for Hungary.
He played for Hungary's Honved and Real Madrid and was known as "Little Brother" in Hungary, "The Galloping Major" in England and the "Booming Cannon" by Real Madrid fans.
The winner will be decided by an online poll and awarded during the FIFA World Player Gala in December.
