The Swiss tennis star was preferred by the journalists to Formula One World Champion Fernando Alonso, former Formula One world champion Michael Schumacher, captain of the victorious Italian World Cup football team Fabio Cannavaro, the co-holder of the 100m athletics world record Asafa Powell, and Roger's friend golfer Tiger Woods.
This makes him the first athlete ever to have won the award three times.
Federer won three Grand Slams in 2006, and started the 2007 campaign with a brilliant victory in the Australian Open, in January, to add his 10th career major championship.
Full list of the awards:
Laureus World Sportsman of the Year: Roger Federer (Switzerland)
Laureus World Sportswoman of the Year: Yelena Isinbayeva (Russia)
Laureus World Team of the Year: Italian Men’s Football Team
Laureus World Breakthrough of the Year: Amélie Mauresmo (France)
Laureus World Comeback of the Year: Serena Williams (USA)
Laureus World Sportsperson of the Year with a Disability: Martin Braxenthaler (Germany)
Laureus World Action Sportsperson of the Year: Kelly Slater (USA)