The award being given to Prof Stephen Sparks, of the University of Bristol, is considered the "Nobel Prize of the earth sciences".
Prof Sparks headed monitoring efforts when Montserrat's SoufriÃ¨re Hills volcano came to life in the 1990s.
He will be awarded a medal and $250,000 at a ceremony in New York in June.
Elected to the Royal Society at the age of 38, Prof Sparks is among the world's mostly highly-cited geologists.
He is credited with being one of the first to apply maths and physics to the interpretation of volcanic processes and deposits in the field, bringing volcanology into the modern era.
He pioneered methods for assessing the danger posed by active volcanic eruptions, helping governments to improve decisions about evacuations and rebuilding.
Prof Sparks, who was born in London and raised in Chester, is a father-of two who now lives in Bristol with his wife Ann.
Barry Voight, a volcanologist at Pennsylvania State University, said: "Everyone has an egotism that drives their research, but Steve never lets it get in the way of working with others.
"You know he's not going to pick your brain and run off with your ideas. Instead, he will often improve on them."
The Vetlesen Prize is supported by the G Unger Vetlesen Foundation and administered by Lamont-Doherty Earth Observatory at Columbia University.
Prof Stephen Sparks' career

Heavy rain in Brisbane also led to the women's Test being postponed.
The ladies' fixture will kick off at 05:00 BST, with the men's match taking place at 07:00 BST (16:00 local time).
"There were a number of considerations for this decision, primarily player safety as well as supporters," NRL head of football Todd Greenberg said.

The clubs had voted in favour of the increase by a majority of seven to five at a meeting on Wednesday.
In addition, clubs can have two marquee players - up from one - with exemptions for new or returning players as well as some under the age of 21.
The 12 teams will be able to spend £1.9m next year, £2m in 2019 and then £2.1m in 2020.
It is below the Australian National Rugby League cap of £4.25m for 2017, while, in rugby union, the English Premiership cap is £7m.
Super League's chief commercial officer Roger Draper says the increase will put clubs in a stronger position to compete to bring some former league players back to the sport from rugby union, such as Kyle Eastmond, who left St Helens to join Bath in 2011, and Chris Ashton, an ex-Wigan player currently at Toulon.
When asked by BBC Radio Manchester if this is an attempt to target union players, he replied: "Yes, there are rugby union players out there and returning talent.
"There is speculation around Kyle Eastmond and Chris Ashton, those sort of players, who have made an impact and want to come back into rugby league as well."
Wigan Warriors owner Ian Lenagan voted in favour of the new proposal and said: "We need the best players playing in our competition and when all of the proposals that were voted through are looked at together, the decisions that were made will provide Super League clubs the opportunity to do that."
However, Wakefield coach Chris Chester told BBC Radio Leeds the changes will make things tougher for his club.
"I think it's divisive and it will make the gap between the top and the bottom wider. I find it bemusing," he said.
"There won't be any marquee players at Wakefield Trinity for the foreseeable future. It's something we won't be using."
Marquee players
New and returning players
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The victim, in his 30s, was attacked by a group of five or six youths in Grosvenor Street, Cheltenham, on Friday.
He was known to his attackers, Gloucestershire Police said.
All three boys were arrested on suspicion of causing grievous bodily harm (GBH).
The eldest, aged 14, was arrested separately from the younger pair.
Police appealed for witnesses to the attack, which happened at about 17:30 BST.

The suspect, 26 and of no fixed address, was detained by West Midlands Counter Terrorism Unit officers after arriving on a flight from Turkey.
He is being held in custody in the West Midlands.
West Midlands Police said the arrest was pre-planned and there was no threat to the safety of the flight or the airport.
A British geologist whose work has improved the ability to forecast deadly volcanic eruptions is to receive the 2015 Vetlesen Prize.
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