Turn Three, the scene of many of the two-time MotoGP world champion's daring sliding manoeuvres at Phillip Island, will now be known as "Stoner Corner."
The Australian rider, 27, has dominated MotoGP racing at his home circuit since 2007 and has announced he will retire from the sport at the end of this season.
"Turn three is probably my favourite one in the world. I am almost flat out in fifth gear through there and that is pretty damn fast and it really gets your blood flowing that's for sure," Stoner said.
"It always gives me a great rush going through there so to have a corner named after me at Phillip Island is something quite special. It is a great privilege."
Turn Three is a fast downhill left-hander which MotoGP riders hit at more than 250 kilometres per hour (155 mph).
Stoner's chances of retaining his MotoGP world title were ended when he suffered serious leg injuries in a crash during qualifying for the Indianapolis MotoGP in mid-August.