The Sun On Sunday reports that the 33-year-old will get the award in the New Year Honour's list for her services to television.
It's not the first time the pretty star's work has been recognised, as she has previously won a BAFTA for her role in the Great Biggest Train Robbery drama Mrs Biggs.
Her former boyfriend, James Corden, who starred with Sheridan in hit sitcom Gavin and Stacey is also set to be honoured in the New Year's honours list.
The 36-year-old will receive the honour in the New Year's honours list for his services to entertainment and charity.Insiders said that the Queen was 'delighted' with her decision to sign off the honour.
A Buckingham Palace source told The Sun, 'James Corden is a huge young talent on many different fronts. His charitable work is also very impressive, making him a fantastic ambassador for the nation.'
MailOnline has contacted a spokesperson for Sheridan Smith for comment. A spokesperson for Buckingham Palace was unavailable for comment.
Meanwhile, Sheridan admitted she's been feeling a little down over Christmas.
She tweeted: 'I guess no matter what you say or do, some people will never grow to like you. That's life! Sorry for depressing tweet at Xmas, feeling down.'
