The award is presented by the Football Writers Association of America.
Gundy guided Oklahoma State to an 11-1 record this season and the Cowboys won their first undisputed conference championship since 1948. Oklahoma State's only setback came against Iowa State, a loss that eventually cost the Cowboys a chance to play for the national title.
Oklahoma State will take on Stanford in the Fiesta Bowl Jan. 2. It will be the Cowboys' first appearance in a BCS bowl game.
"We've had a tremendous year at Oklahoma State," said Gundy, who is in his seventh season with the Cowboys. "It's a testament to our players and our coaching staff that we are in the position that we are in."
The other finalists for the award were Michigan's Brady Hoke, LSU's Les Miles, Kansas State's Bill Snyder and Clemson's Dabo Swinney.