The award is voted for by the league’s captains and vice-captains and the 24-year-old came out on top in a poll which was conducted at the end of the regular campaign.
It is the second time Sheehan has been recognised in the URC Awards having secured a place in the Elite XV, pipping OFX Top Try Scorer Tom Stewart to the hooker position.
Sheehan crossed eight times to help Leinster top the league table with only team-mate Rob Russell (10) registering more.
In scoring four tries in the 42-10 Round 2 win over Benetton at the RDS Arena, including a 28-minute hat-trick, Sheehan equalled the BKT URC record number by an individual in a game - becoming the eighth player, and first from Leinster, to achieve that feat.
He also claimed a brace as Leinster suffered Heineken Champions Cup final heartache for the second successive season after losing 27-26 to holders La Rochelle in Dublin on Saturday.
Sheehan has been capped 17 times by Ireland and was part of the team which registered an historic tour success against New Zealand last summer.
In addition, he went over twice as Ireland clinched Guinness Six Nations Grand Slam success in Dublin for the first time with a battling 29-16 bonus-point victory over 14-man England in March.
Further to his BKT URC recognition, Sheenan was nominated for the Men’s XVs Players’ Player of the Year and Men’s Young Player of the Year in the Rugby Players Ireland Awards.
URC Awards 2022/23 Winners
OFX Top Try Scorer: Tom Stewart (Ulster)
Tackle Machine: John Hodnett (Munster)
Turnover King: Thomas Young (Cardiff Rugby)
Elite XV: Kurt-Lee Arendse (Vodacom Bulls), Darcy Graham (Edinburgh Rugby), Sione Tuipulotu (Glasgow Warriors), Daniel du Plessis (DHL Stormers), Simone Gesi (Zebre Parma), Ross Byrne (Leinster), Grant Williams (Cell C Sharks), Gavin Coombes (Munster), Scott Penny (Leinster), Vaea Fifita (Scarlets), Federico Ruzza (Benetton), Niall Murray (Connacht), Finlay Bealham (Connacht), Dan Sheehan (Leinster), Steven Kitshoff (DHL Stormers).
Next-Gen Player of the Season: Tom Stewart (Ulster)
Vodacom Fans’ Player of the Season: Manie Libbok (DHL Stormers)
Try of the season: Joaquin Riera (Benetton @ Cell C Sharks, Round 17)
Gilbert Golden Boot: Johan Goosen (Vodacom Bulls)
Ironman: Quan Horn (Emirates Lions)
BKT Coach of the Season: Franco Smith (Glasgow Warriors)
Players’ Player of the Season: Dan Sheehan (Leinster)