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To be launched here later this month, the car was chosen from a list of 28 nominated by journalists from 22 countries including Australia.
The announcement was made at the New York International Auto Show.
Jurors considered the LS 460 to be “classically luxurious, with modern execution, unquestioned quality and more than ample power”.
A green alternative, the LS 600h hybrid will be released later this year.
Cars are judged on a number of criteria including styling, quality, performance and safety.
The top three contenders were the Lexus, Audi TT and the Mini.
The TT won the design award, while Audi's RS4 won the performance car trophy and Mercedes-Benz E320 BLUETEC won the green car award.
First winner of the three-year-old award was the Audi A6 in 2005, followed last year by the BMW 3 Series.
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