The prize, worth SEK 150,000, is in memory of Sweden's former foreign minister, who was killed in a central Stockholm department store ten years ago this month.
It was set up with "the aim to encourage and support those who, like Anna Lindh help others and strive for a more humane and just world."
The prize will be awarded on the 11th September, the anniversary of Lindh's death. Albright will not attend the ceremony, but will appear via videolink, news agency TT reports.
Radio Sweden will be broadcasting a special programme on the 11th September, looking back at the life of Anna Lindh.