Skipper Corry led Tigers to their first Guinness Premiership and EDF Energy Cup double, as well as into the Heineken Cup Final, and was praised in the magazine poll for his "aptitude in adversity" at Test level with England.
"He deserves the award for his incredible consistency," said Alastair Hignell, the former England international and member of Rugby World's judging panel.
Corry topped competition from New Zealand captain Richie McCaw and All Blacks fly-half Dan Carter, as well as Juan Martin Hernandez of Stade Francais and Argentina.
Pat Howard was a runner-up in the Coach of the Year category, with the award going to Richard Hill of Bristol Rugby.
There was also recognition for incoming Tigers head coach Marcelo Loffreda as Argentina's victory over England at Twickenham was named Outstanding Achievement.
Tigers' historic victory over Munster at Thomond Park in the Heineken Cup was among the runners-up in that section.
The 2007 Rugby World Award winners:
Player of the Year: Martin Corry.
Runners-up: Dan Carter, Richie McCaw and Juan Martin Hernandez.
Coach of the Year: Richard Hill.
Runners-up: Pierre Berbizier and Pat Howard.
Young Player of the Year: James Hook.
Runners-up: Tom Rees, Dominic Waldouck and Francois Steyn.
Outstanding Achievement: Argentina's win at Twickenham.
Runners-up: Llanelli's 20-19 win in Toulouse, New Zealand's 47-3 win over France and Leicester's 13-6 Heineken Cup victory over Munster at Thomond Park.