24-year-old Swift has certainly been enjoying a great year with her latest album 1989 selling more than a million copies in a week. In recognition of her achievements, Swift will be receiving the new award, reported MTV online.
In a statement, released on the AMAs' website, the organisation revealed Swift had been chosen as the recipient of the award because of her album sales.
Swift is one of the first artists to create three albums all of which sold more than a million copies within their first week on the market.
The Dick Clark Award is named after the founder of the AMAs. Clark acted as the host of American Bandstand for thirty years from 1957 and became a hugely influential figure in the music industry. Clark created the AMAs in 1973.
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Clark died in 2012 but he is survived by his wife, Kari.
Pitbull, who is hosting the awards, will also be performing.