0849 GMT April 03, 2020
The 36-year-old Swiss won the Australian Open and Wimbledon titles in 2017 after nearly five years without a major, BBC reported.
"I didn't believe I would ever come back to this level," said Federer. "The year I had was something else."
Serena Williams took the World Sportswoman of the Year award after winning her 23rd grand slam in 2017.
Also nominated for the prize along with Federer were his Spanish counterpart Rafa Nadal, Real Madrid’s Portuguese Cristiano Ronaldo, British F1 driver Lewis Hamilton, distance runner Mo Farah of the Great Britain and the 2017 Tour de France champion Chris Froome.
"This means the world to me," added world number one Federer.
"The comebacks are always extremely emotional. Last year was a dream come true."
Formula 1 constructors' champions Mercedes picked up the Team of the Year accolade, and wheelchair athlete Marcel Hug won Sportsperson of the Year with a Disability.
"There's so much expertise in all parts of our team, I feel so proud to be a part of it," said Mercedes' world champion Hamilton.
Also at the ceremony in Monaco, golfer Sergio Garcia secured the Breakthrough prize following his Masters success, while recently-retired Roma forward Francesco Totti clinched the Laureus Academy Exceptional Achievement award.
Brazilian football club Chapecoense was given the Best Sporting Moment of the Year for its response in adversity following a plane crash in 2016 in which the Brazilian club lost the majority of their team.