The results were announced overnight by France Football magazine, which initiated the Golden Ball award in 1956.
"It's one of the greatest days of my life. Winning this trophy ... I dreamed about it as a kid," France Football quoted Ronaldo, 23, as saying. "Those who know me, who live with me, know that this is finally a dream come true for me."
Ronaldo won the award after a scintillating club season that saw him lift the English Premier League and the Champions League with Manchester United. He scored an incredible 42 goals in all competitions for the club and was hot favorite to win the prestigious award.
Barcelona striker Lionel Messi took second place, while Liverpool forward Fernando Torres was third. Zenit St. Petersburg's Andrei Arshavin came sixth in the poll.
Ronaldo thanked his teammates for helping him to win the Golden Ball and also said that he wanted to win it again.
"They are the ones who passed the ball for me to score goals," he said. "What is for sure is that I want to win it again, it feels so good."
Last year's award was won by AC Milan's Kaka, while Ronaldo was second.
Rolando is the fourth Manchester United player to win the Golden Ball, but the first since George Best won the award in 1968. He is also the third Portuguese player to be named European player of the year, after Luis Figo in 2000 and Eusebio in 1965.
He will receive the award at a ceremony on December 7.
RESULTS
1. Ronaldo (Manchester United)
2. Lionel Messi (Barcelona)
3. Fernando Torres (Liverpool)
4. Iker Casillas (Real Madrid)
5. Xavi (Barcelona)
6. Andrei Arshavin (Zenit St. Petersburg)
7. David Villa (Valencia)
8. Kaka (AC Milan)
9. Zlatan Ibrahimovic (Inter Milan)
10. Steven Gerrard (Liverpool)
