The Richie Benaud Medal will be presented to the player-of-the-series in the current Frank Worrell Trophy and all future Test series between Australia and West Indies.
Benaud stood at the top of the game throughout his rich life, first as a record-breaking leg-spinner and captain, and then as cricket's most famous - and most impersonated - broadcaster.
Benaud's family said it was delighted that he would continue to be recognised for his prominent role in cricket.
"This is a wonderful honour and we are delighted that his name will forever be linked to series played between the two teams."
Cricket Australia Chief Executive Officer James Sutherland said it was fitting that the Medal will be awarded in Sydney at the end of the third and final Commonwealth Bank Test.
"The Sydney Cricket Ground was Richie's favourite stage, where he performed many fine feats for New South Wales and Australia," Sutherland said.
West Indies Cricket Board Chief Executive Officer Michael Muirhead commended Benaud for the enormous contribution he made on the field as a player and captain and off it as a broadcaster for half a century.
"The WICB fully supports the initiative and gives full recognition to the impact Richie Benaud had on and off the field for Australia. In his memory we support CA's efforts to use his legacy to inspire the cricketing world.
"The rivalry which existed back then and what we hope to return between Australia and the West Indies will signify the contribution Richie made.