The Science Fiction & Fantasy Writers of America (SFWA) has announced that Gene Wolfe will be the recipient of the 2012 Damon Knight Memorial Grand Master Award.
SFWA President John Scalzi, on choosing Wolfe, “You’d have to search far and wide to find a contemporary fantasy writer who has not been directly influenced by Gene Wolfe.”
Wolfe himself on the honor, “You’d better watch your step, folks; you’re raising me to a height I would never have imagined. If you keep this up I’ll start thinking I’m a good writer.”
You can read their extended statements, along with praise from Neil Gaiman, Connie Willis, at the above link.