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6 October 2012, 09:28 | Updated: 6 October 2012, 09:42
The 'Marry The Night' singer will be presented with her prize by Yoko Ono at a ceremony in Iceland.
Lady Gaga has been announced as one of the recipients of the 2012 Lennonono Grant For Peace.
The 'Bad Romance' star was praised for her activism and recent album 'Born This Way' by Yoko Ono – who will present the US star with her prize at a ceremony in Iceland on 9th October.
"Lady Gaga is one of the biggest living artists of our time," said Yoko in a statement. "She is not only an artist, she is also an activist, using her art to bring better communication to the world.
"She is being acknowledged for her activism, and how her album 'Born This Way' has widely changed the mental map of the world. And how it has made us deal with the future world, which happens to be here already."
The 'You & I' singer will give her prize money for the grant to the Elton John AIDS Foundation.
The four other recipients of this year's grant include Pussy Riot Rachel Corrie, John Perkins and Christopher Hitchens.
Meanwhile, Lady Gaga has recently been hitting out at comments over her weight gain during her 'Born This Way Ball' tour.
This week also saw the US star become the first ever person to reach 30 million followers on social networking site Twitter.