The ex-all-rounder, who scored 5,200 runs and took 383 wickets in 102 Tests, has been a passionate advocate of the game in the north east.
Botham became club chair in the year after Durham had been relegated from Division One for financial issues, were placed under a salary cap and had their status as a Test match venue rescinded.
But he has presided over an upturn in fortunes, which is recognised by ECB chair Richard Thompson.
“Lord Botham’s period as chair has been marked by Durham’s strong recovery and the conveyer belt of English talent it has produced.
“The club has been put on a more secure footing, returned to the First Division of the men’s County Championship, and it will also compete in the top tier of the new women’s domestic structure next year.”