Sparkle's Jordin Sparks and John Legend will pay tribute to Houston's life and career by awarding the late star with the Billboard Millennium Award.
Houston's daughter Bobbi Kristina and sister-in-law Pat are expected to accept the prize on the star's behalf.
Beyoncé received the inaugural Billboard Millennium Award in 2011.
Stevie Wonder will also be honoured on Sunday's telecast by being presented with the 2012 Icon Award.
Adele heads this year's Billboard Music Award nominees with nods in 18 categories, including 'Top Artist'. LMFAO, Katy Perry and Lady GaGa have received multiple nominations as well.
Justin Bieber, Kelly Clarkson, Linkin Park, The Wanted, Nelly Furtado and Carrie Underwood will perform on the telecast.
The Billboard Music Awards – hosted by Modern Family's Julie Bowen and Ty Burrell - are broadcast live from the MGM Grand in Las Vegas on Sunday, May 20 at 8/7c on ABC.
Watch Whitney Houston perform 'I Will Always Love You' below: