The Government of India has instituted the award to commemorate 100 years of Indian Cinema.
The 77-year-old actress, known for her memorable performance in films like 'Guide' and 'Sahib Bibi Aur Ghulam', will be given the honour in recognition of her unparalleled contribution to Indian cinema on the opening day of the ten day festival.
Rehman has been selected unanimously by a five-member jury. The award carries a citation, a certificate, a medal (silver peacock), a shawl and a cash prize of Rs 10 lakh.
Rehman was given Padma Shri in 1972 and the Padma Bhushan in 2011.
Indian cinema celebrated it's centenary on May 3 this year, 100 years after the release of the first film 'Raja Harishchandra' by Dadasaheb Phalke in 1913.
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