Wing Julian Savea, who yesterday scored another memorable try to take his tally to 30 in 33 tests, was also on the short-list, but the judges found in favour of Chiefs lock Retallick, one of the toughest and hardest workers in the All Blacks.
"It's thoroughly deserved," coach Steve Hansen, who was honoured as coach of the year, said. "He's a young man whose career has taken off from day one. We've always marvelled at the size of his engine, he can just keep going all day.
"He's ably supported by Sammy [Whitelock]. There's a sense of strength about him mentally. He's physically tough. He should be very proud. It's a combination and I think both of them do a great job for the team."
Retallick, 23, who received the award after the All Blacks' 34-16 victory over Wales at the Millennium Stadium in what was his 36th test, said he still had plenty of improving to do.
"There are still parts of my game I can work on," said Retallick, who has developed from a hard-hitter in the engine room to being able to direct the point of the All Blacks' attack with his precise passing game.
Asked what role Whitelock had played in his development, Retallick replied: "Everyone in this All Black team is pushing each other to try to get better. We talk about having the two best XVs in the world. If you're not playing one week you're trying to better each other and drive a good performance. He's played a huge role.
"It's a huge honour to receive the award. It's something I didn't think about until last week when I was nominated.
"I just wanted to improve on the previous couple of years. Obviously I didn't think it would go this well."
World Rugby chairman Bernard Lapasset said: "Brodie Retallick has been at the heart of another hugely successful year for the All Blacks with his superb lineout skills, ball carrying ability and work at the breakdown playing a huge role in a June series win against England, the Rugby Championship title and a strong November series."
The All Blacks also won team of the year.
- By Patrick McKendry of NZME
