Djokovic was a clear winner of the award having won three of the four Grand Slam titles and finished the year as world number one.
The women's award was a closer fight, but Wimbledon champion Kvitova, who also helped the Czech Republic win the Fed Cup, beat year-end number one Caroline Wozniacki to the crown.
Djokovic, who ends a seven-year domination of the award by Roger Federer and Rafael Nadal, said: "I am proud to have been named the ITF world champion for 2011.
"Starting with victory in last year's Davis Cup final, this has been an almost perfect 12 months for me. I have always dreamed about becoming the best in the world, and to have won three Grand Slam titles and finished the year as number one is very special."
Kvitova, whose win at the season-ending WTA Championships saw her finish the year as world number two, said: "I will cherish this award, which is the cherry on top of a wonderful year.
"It was a dream year and something I will never forget."
ITF president Francesco Ricci Bitti said: "Both Novak Djokovic and Petra Kvitova have managed to combine strong performances for their country with outstanding individual records.
"Novak's achievements this year are remarkable in such a strong era for men's tennis, while Petra has made a major breakthrough on the women's tour."
The men's doubles award went to Bob and Mike Bryan for the eighth time, while Kveta Peschke and Katarina Srebotnik took the women's honour for the first time.
The junior world champions were named as Australian Open winner Jiri Vesely and Irina Khromacheva, who ended the year as the girls' number one, while the wheelchair gongs went to the Dutch duo of Maikel Scheffers and Esther Vergeer, the latter claiming the award for a 12th straight year.
The champions will receive their awards at the annual ITF World Champions Dinner in Paris on June 5 next year.