The prestigious award is voted by members of the LMA, including all managers from the top four leagues in English football.
Pardew, who also won the Barclays Manager of the Season gong, was recognised for leading Newcastle to fifth place in the Premier League this season.
Newcastle claimed 19 wins from 38 matches, recording 15 clean sheets and remaining in the top 10 all season long on their way to brink of securing a Champions League spot. Only defeat on the final day of the season - and results elsewhere going against them - saw the Magpies miss out.
"There is no doubt that the LMA Annual Awards are perceived as the most accurate measure of a manager’s ability because there are no better judges of your performance than your peers," LMA chairman Howard Wilkinson said.
"Alan Pardew’s achievements at Newcastle this season are there for all to see and it is just reward that he should be named as LMA Manager of the Year.
"I’m often asked, where are all the English coaches? My answer is ‘We have plenty of them, they just need an opportunity.’ I am delighted for Alan that he has taken his opportunity."
Richard Bevan, chief executive of the LMA, added: “To receive votes from and to be acknowledged by your fellow managers and competitors is a great honour.
"Alan is fully deserving of this recognition and what he has achieved in such a short space of time with Newcastle is very impressive."