David Beckham inspired England to the World Cup
The England captain, whose brilliant 93rd minute free-kick against Greece secured England's place at the 2002 World Cup in Korea and Japan, landed the award at a ceremony in London.
Beckham fended off competition from triple jumper Jonathan Edwards, who won gold at the World Athletics Championships in August, who came second.
The 53rd SWA occasion was marked by an emotional speech from Gerard Houllier, whose Liverpool side were named Sports Team of the Year.
The Anfield club won an unprecedented treble last season, claiming the Worthington, FA Cup and Uefa Cups, adding the Charity Shield and the European Super Cup this season.
"I'd like to thank the team behind the team," said Houllier, who addressed the audience by a video link after recovering from heart surgery in October.
"All the staff and members of the club have been brilliant and I hope to be in person with you next year."
Olympic gold medallist Stephanie Cook won the Sportswoman of the Year award after excelling in the pentathlon this season.
Cook, a qualified doctor, won the European individual championship and the world team event.
Jean Pickering, wife of late BBC commentator Ron Pickering, collected the special President's Award for her tireless work with the Memorial Trust which funds young athletes.