Paterson, who clocked up a record 109 caps for his country, also became Scotland's leading points scorer when he surpassed Gavin Hastings' record on the 2008 tour to Argentina.
On his 100th appearance against Wales in 2010 he suffered a lacerated kidney but returned for the Six Nations in 2011, and the versatile playmaker paid tribute to some of his team-mates who have helped him along the way.
He said: "I've only ever focussed on playing well and doing the supporters, myself and my family proud.
"To be recognised by people outside your profession is humbling and I just hope I have deserved it.
"I've been fortunate to play with so many great players and I'll never ever forget the cheers of those Murrayfield crowds.
"You don't play rugby to pick up awards like this. You do it for enjoyment first and foremost.
"To be even nominated for this honour is something I would never have imagined.
"To be recognised in this way for doing something you love to do is a wee bit strange to be honest but it'll be a nice reminder of what I've achieved in both club and international rugby."
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