Gül is expected to receive the prize at a dinner to be hosted in London this fall.
The other nominees were French Finance Minister Christine Lagarde and Croatian President Stjepan Mesic.
"President Gül is recognized for being a significant figure for reconciliation and moderation within Turkey and internationally, and a driving force behind many of the positive steps that Turkey has taken in recent years," the think-tank said in a statement.
The Chatham House Prize is an annual award presented since 2004 to the statesperson deemed by members of the Royal Institute of International Affairs at Chatham House to have made the most significant contribution to the improvement of international relations in the previous year.
Brazilian President Luiz Inacio Lula da Silva received the award in 2009, and Ghanian President John Kufuor won it in 2008.
Founded in 1920 and granted its Royal Charter in 1926, Chatham House aims to be a world-leading source of independent analysis, informed debate and influential ideas on how to build a prosperous and secure world for all.
Also known as the Royal Institute of International Affairs, regularly hosts high-profile speakers from around the world in a packed programme of events and conferences as well as organizing and participating in a number of events and conferences elsewhere in the UK and overseas.
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