The Portugal captain received the 2013/14 accolade at the Grimaldi Forum in Monaco from UEFA President Michel Platini, according to uefa.com.
Ronaldo, among the final nominees for the fourth successive year, finished ahead of FC Bayern Munich’s Arjen Robben and Manuel Neuer in a live vote by a panel of 54 journalists.
They had to select, via an electronic system, their favourite from a three-man short list announced a fortnight ago.
Ronaldo, speaking during a ceremony that followed the UEFA Champions League group stage draw, said: "I'm really happy so I must say thanks to my team-mates because without the team, individual awards would not be possible.
“I don't have this trophy in my museum, so my brother is going to put it there."
The 29-year-old follows Franck Ribéry (2012/13), Andrés Iniesta (2011/12) and Lionel Messi (2010/11) as a recipient of the award.
He broke the record for goals, 17, by a player in a UEFA Champions League campaign last term as Madrid claimed their long-awaited tenth European title.
"It was amazing, something that Madrid had looked to do for many years. As Madrid players we feel as though you have to win the Champions League.
“It was a fantastic season – we won the Champions League, the Spanish Cup and the [UEFA] Super Cup."