The Pharaoh, who joined Liverpool from AS Roma during the summer, scored 31 goals so far with the Reds in the Premier League - a record that stands as the best in English football since the Premier League was narrowed down to 38 games per season.
He was unable to to attend the ceremony on Sunday evening, having played just hours earlier in City's 5-0 thrashing of Swansea, but said via a video message: "I'm really honoured to win this award and I have to also say thank you to all my fans, team-mates, to the coaches and all at Man City".
The Egyptian forward beat off competition from Tottenham's Harry Kane, Manchester United's David de Gea and Manchester City duo Kevin de Bruyne and David Silva to scoop the prestigious award in a vote by his fellow players.
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Salah, who is now the Premier League top scorer by 31 goals, has reached his peak form this season with Liverpool.
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"Hopefully I'm not the last one", he said. "Let's see what will happen". "To break the Premier League record is something huge in England and all over in the world".
Five other Liverpool representatives have previously won the award, including Kenny Dalglish, Ian Rush, John Barnes and Steven Gerrard.
The women's category saw Chelsea forward Fran Kirby take the Player of the Year prize, while Bristol City's Lauren Hemp retained the Young Player trophy.
Salah is a shoo-in for Liverpool's end-of-season accolades and the man nicknamed "The Egyptian King" looks set to reign at Anfield for a long time to come.