MELBOURNE legend Jim Stynes has been officially commemorated by the AFL with a community award in his honour.

Stynes, who died in March after a three-year battle with cancer, will be recognised with the Jim Stynes Community Leadership award.

The award will be presented annually to the AFL player who best demonstrates the values of Stynes in his commitment to the community and understanding the value of helping others.

The winner will be decided by a selection panel including Stynes' widow Sam Stynes, the current AFL chief executive, an AFL Commissioner, a community representative and the previous year's winner.

The award will also come with a $20,000 donation from the AFL to the winner's charity or community program of his choice and will be presented at the Brownlow Medal dinner on the Monday of Grand Final week.

As well as playing 264 games with the Demons over 12 years and holding the presidency of the club, Stynes was the co-founder of Reach, an organisation set up to help develop young people.

The award is similar to the NFL's Walter Payton Man of the Year award, which honours a player's volunteer and charity work.

AFL CEO Andrew Demetriou said the award was perfectly suited to be named after Stynes.

"We are all indebted to Jim Stynes' memory and will forever be inspired by his contribution to Australian life that is matched by few in the history of the game," he said.

"This award is a fitting tribute to Jim's boundless commitment to the broader community such as establishing the Reach Foundation and supporting numerous community initiatives during and after his playing career."

In 1998 the Irish-born AFL great was recognised with the Jim Stynes Medal for the best Australian player in the International Rules series with Ireland.

Luke Holmesby is a reporter for AFL.com.au. Follow him on Twitter - @AFL_Luke