The award carries a prize of C$50,000 and a gala reception, with a recital from the winner, in September 2005.
Previn also has the opportunity to name a young musician to receive the C$10,000 City of Toronto-Glenn Gould International Prot_g_ Prize in Music.
"I thought Glenn Gould was the greatest pianist of his time," Previn said, "and I admired him boundlessly. It certainly is an honour to be given a prize that bears his name, and to be in the company of all those who were previous laureates. I am delighted."
Previous winners of the prize, which is given triennially, include Pierre Boulez, Yo-Yo Ma, Toru Takemitsu, Oscar Peterson, Yehudi Menuhin, and R. Murray Shafer.
Previn is currently music director of the Oslo Philharmonic Orchestra, a post he has held since 2002, and has previously led such orchestras as the New York Philharmonic, Houston Symphony, London Symphony Orchestra, Los Angeles Philharmonic, Pittsburgh Symphony, and the Royal Philharmonic.
As a pianist he frequently performs with violinist Anne-Sophie Mutter‹his wife‹and cellist Lynn Harrell.
His recent compositions include a work for the Emerson String Quartet and a piece for violin and piano, commissioned by the Boston Symphony, which he wrote for Mutter.
The Glenn Gould Prize was created by the Glenn Gould Foundation as a tribute to the great Canadian pianist. This year's jury for the prize included Schuyler Chapin, former commissioner of New York City's Department of Cultural Affairs; pianist Jane Coop; conductor Agnes Grossman; artist Paul Hoffert; and critic William Littler.