The 21-year-old was voted by supporters as the Three Lions' standout player over the last 12 months.
Saka beat Declan Rice and England's captain Harry Kane to the gong, with the West Ham midfielder and Tottenham striker coming second and third in the vote, respectively.
The young Gunners ace made nine appearances over the international season, managing three goals, while he was named Man of the Match in a 4-0 win over Andorra at Wembley on his birthday last September.
The award marks a brilliant spell of form for Saka, who has been Arsenal's Player of the Season for the last two years, and has also twice been shortlisted for the Kopa Trophy - an honour given to the world's best players under the age of 21.
The youngster also displayed mental fortitude beyond his years as he came back from missing the crucial penalty in England's Euro 2020 final defeat to Italy, to continue to star for club and country.
"No way," he said when handed the gong.
"I did not expect this, honestly. I'm honoured.
"I'm so happy, I can't put into words how happy I am. It's really nice to be awarded this trophy, and that's all I can really say!
"Playing for England is so special, there are so many kids who want to play football for teams and it's really difficult, so to then get picked to play for your country, it's another level of honour and pride in yourself.
"So I'm just really happy every time I get to come here, pull on the shirt and play at Wembley in front of all the fans.
"It's a beautiful feeling."
Saka has collected 18 England caps and scored four goals since making his senior debut in a 3-0 win over Wales at Wembley Stadium in October 2020, and becomes the first Arsenal men's player to land England's Player of the Year award since its inception in 2003.
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