Caan will be the first to receive the award at a reception at the 10th annual CineVegas Film Festival Friday.
The organization said Caan was selected for his "embodiment of the exciting spirit of Las Vegas and delivery of memorable performances in movies and television shows set in the world-famous city."
"I am honored that Las Vegas has selected me to be the first recipient of this unique award," Caan said in a statement. "I have enjoyed working and visiting the city and always look forward to returning. The people have always been kind to me. I have visited the city over 300 times in the past 35 years and that's why I'm so pleased to receive this award."
Caan's longtime friend Robert Duvall is to present the actor with the prize.
Duvall has described Caan as "a very fine and talented actor who's All-State everything."
In addition to starring in the film "Honeymoon in Vegas" and the TV series "Las Vegas," Caan also is known for his roles in "The Godfather" and "Brian's Song."
Texas principal bans speaking Spanish, stirs controversy
Toddler uninjured after being knocked over by Obama family dog