The award, based on the votes of members of the Italian Footballers Association, was one of three Cannavaro won at the ceremony in Milan after also coming out top in the Best Italian Player and Best Defender categories.
The Oscar made it three trophies in three months for the 33-year-old Real Madrid player, who won the European Footballer of the Year award in November and the following month became the first defender to be voted FIFA's World Player of the Year.
Three of Cannavaro's Italy team mates also received awards on Monday.
Juventus's Gianluigi Buffon was named Best Goalkeeper, AS Roma's 23-year-old midfielder Daniele De Rossi got Best Young Player, and Luca Toni received the Top Scorer award for his tally of 31 league goals for Fiorentina last season.
In the other categories, AC Milan playmaker Kaka shared the Best Foreign Player award with Cagliari striker David Suazo, while Luciano Spalletti was recognised for turning Roma into Serie A challengers again when he was voted Best Coach.
