The defender won the award ahead of Jussi Jaaskelainen and Mohamed Diame and he joins the likes of club legends Bobby Moore and Sir Trevor Brooking in receiving the award.
Reid told the club website: "It is quite an accolade to be named Hammer of the Year. I have basically been here nearly three years at the club and I feel at home, so it's nice to feel appreciated. Other players have done well, too, so it's been really good.
"I think every single player believes in themselves and believes they can do well, but you obviously have to have a bit of luck and fortune now and then throughout the season, but when you work hard you get the things you deserve - I'm not saying that in a selfish way because there are a lot of other players who have done well this season."