The award will be handed out during the ESPYs on July 18.
Almost 200 girls and women accused Nassar of assaulting them and gave victim impact statements during Nassar's three sentencing hearings.
Aly and numerous other survivors spoke at Larry's sentencing hearings earlier this year which led to the disgraced doctor being sentenced to up to 175 years in prison on multiple counts of sexual assault.
"They have shown us all what it truly means to speak truth to power, and through their bravery, they are making change for future generations".
The scandal led to leadership changes at both USA Gymnastics and Michigan State. "By honoring this group who spoke out, we aim to honor all of those who are survivors of abuse".
Previous recipients of the Arthur Ashe Courage Award have included Muhammad Ali, Billie Jean King, Pat Tillman, Tommie Smith and John Carlos, Nelson Mandela, Pat Summitt, Caitlyn Jenner, Zaevion Dobson and others.