The aluminium torch was created by UK design studio, Barber Osgerby. It is perforated with 8,000 holes, each representing one of the torchbearers.
The winner was chosen from 89 entries and was presented at an awards ceremony at London’s Design Museum, which organises the annual event.
It will journey across the UK, taking in places such as Wells Cathedral, Cardiff Castle, Giant’s Causeway, Forth Rail Bridge, York Minster, Blackpool Tower and Windsor Castle.
Design Museum director Deyan Sudjic said the torch was “a triumph of symbolism and beauty”.
He added that it “demonstrates how design can celebrate traditional qualities in a modern manner”.
The design has split critics and the public.
Times Columnist Carol Midgeley defended the design: “I think it’s rather elegant, actually.”
The fashion award went to Issey Miyake’s 132.5 collection.
Recent RCA graduate Kihyun Kim won the furniture prize for his balsa wood 1.3 Chair.
Visit the BBC for further information