A voting panel that included the likes of Franz Ferdinand, Sufjan Stevens and The Flaming Lips selected Marshall, who was honored for her 2006 album "The Greatest." Marshall becomes the first female artist to win the award, now in its sixth year.

"Cat Power's album quickly got under my skin," panelist KT Tunstall said in a press release. "She has one of the most beguiling voices around. 'The Greatest' is an immediate classic that will never age.”

"The Greatest" will be featured at Apple's iTunes Music Store along with an exclusive track titled "Up and Gone."

The Shortlist Prize--which honors "the most creative and adventurous albums of the year and shine a spotlight on emerging artists," according to a press statement--was open to nominations for albums released in 2006 that sold less than 500,000 copies. In addition to the artists named above, Marshall also beat out Beirut, Bonnie "Prince" Billy, Girl Talk, Hot Chip, Regina Spektor and Spank Rock to win the prize.

The first Shortlist Prize went to Sigur Ros in 2001. N.E.R.D., Damien Rice and TV on the Radio won in the years that followed.

The award took a yearlong hiatus in 2005 following a dispute between the Shortlist's two founding partners, Tom Sarig and Greg Spotts.