The band will be handed the honour at an event on October 3 at the Jericho Tavern in Oxford, where they were first signed.
"Everyone aspired to play the venue back in the day and I remember seeing my brother's band This Way Up play there as early as 1983," explained Supergrass founding member Mick Quinn.
"We received our first positive reviews as Theodore Supergrass at the Jericho in 1994, when the promoter Maccy burst into the dressing room after our gig telling us, 'You've got it!'
"Soon after, the feeding frenzy of record company A&R men started."
Guy Fletcher, PRS Chair commented: "It's a rare talent that epitomises the feeling and energy of an entire decade. Supergrass were so much a part of our soundtrack to the '90s and the guys worked incredibly hard.
"Their output was impressive and it is a genuine privilege to be presenting the group with this well deserved award. Oxford is an important hub for British music and live music venues like the Jericho Tavern need to be celebrated.
"It's going to be a really special day."
PRS for Music established the Heritage Award in 2009 to honour important live music venues where iconic bands and artists first performed.
Previous winners to accept the Heritage Award include Blur, Elton John, Soul II Soul, UB40, Snow Patrol and Faithless.
Watch the music video for 'Richard III' by Supergrass below: