The reclusive king of pop will receive a Diamond Award, given to artists who sell more than 100 million albums, at the industry ceremony on Nov. 15.
"We are thrilled to be bringing the World Music Awards to London, the music capital of the world," said founder Melissa Corken. "The presence of Michael Jackson is very exciting for us."
Jackson has made few appearances since being acquitted of child molestation charges in June 2005. He left the United States soon after and has spent time in Bahrain and Ireland.
Jackson last performed in Britain in 1997. In 2001, he addressed the Oxford Union student debating society.
The World Music Awards were held in Monaco for 15 years before moving to the United States in 2004 and 2005. This year's event at London's Earls Court Arena is to be hosted by Lindsay Lohan, with performances from Beyonce, Mary J. Blige, Katie Melua and Andrea Bocelli.
The annual show business awards select winners based on the strength of their worldwide record sales. Previous recipients of the Diamond Award include Rod Stewart, Mariah Carey and Celine Dion.