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The Spaniard is recovering from four bouts of surgery following the discovery of a brain tumour last year, which came to light after the 52-year-old collapsed at Madrid airport.
Seve, as he is affectionately known, won three Opens between 1979 and 1988 including victory at St Andrews in 1984. "I am greatly honoured," he said. "St Andrews and the town will always retain a very special place in my heart."
Iconic Seve images
Looking back over the lasy year Ballesteros added: "Patience has never been my strongest point and to spend 22 days in intensive care and 72 days in one room you need tremendous patience.
"There were times when it was tough but when things are going wrong you have to think positive. In my life I have a lot of good things to think about in a positive way and that's what I was doing."
And Ballesteros still hopes to play the Open next year. "I sincerely hope that I will be able to come back and be part of the 150th anniversary.
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