King Felipe VI presented the award announced last year at a ceremony today in the central town of Alcala de Henares, the birthplace of Miguel de Cervantes, author of "Don Quixote."
Culture Minister Inigo Mendez de Vigo said Mendoza's use of irony, parody and comedy continued Cervantes' style from some 400 years ago.
Barcelona-born Mendoza, 74, is best known for his 1975 novel, "La verdad sobre el caso Savolta" (The Truth about the Savolta Case) and "La ciudad de los prodigios" (City of Marvels) of 1986.