The first five-eighths is regarded as one of the finest players to have played in his position throughout rugby history.
He will be joined by Frenchman Thierry Dusautoir, Australian George Smith, both loose forwards, Argentina's versatile back Juan Martin Hernandez and South Africa's wing Bryan Habana.
Carter ended his career with a second World Cup title in 2015 and sitting astride the world Test record of points scored at 1598.
His first Test was against Wales in Hamilton in 2003, a game where he played second five-eighths and scored 20 points.
He played 21 Tests before claiming the first five-eighths position against Italy in Rome in 2004.
A year later, he announced his individual ability with a 33-point contribution in the second Test of the British & Irish Lions series against the All Blacks. That effort is regarded as the best individual Test effort in history.
In making its announcement, World Rugby said, "As a fly-half, Carter was more than a brilliant tactician and world-class goal-kicker; he had the skills, agility and speed to open up defences in his own right as well as facilitating tries for others.
"He was a hugely influential figure during a trophy-laden era for the Crusaders and the All Blacks, as well as enjoying spells in French club rugby with Perpignan and Racing 92, and Kobelco Steelers in Japan, winning three Super Rugby titles and nine Tri Nations/Rugby Championships and two Rugby World Cups.
"Injury deprived Carter of any involvement in the business end of New Zealand's win in 2011 – his third Rugby World Cup – but the man from Southbridge on the South Island was the inspiration behind their 2015 triumph. Carter scored 82 points in six starts, kicking 19 points in the final, including a dropped goal and long-range penalty goal to hald Australia's fightback."
Carter was a three-time recipient of World Rugby's Men's 15s Player of the Year award in 2005, 2012 and 2015, a feat he shared with teammate and captain Richie McCaw.
