Council Leader Barrie Grunewald said: "Steve was a first class ambassador not only for rugby but for the town. As well as being a legend of the game he is also honoured for his tireless fund raising for his Steve Prescott Foundation.
"By naming the bridge after him is our tribute to one of the greats of St. Helens and a most well deserved honour, all the more so that the bridge links the town Steve loved so much to his beloved club.
Steve, was diagnosed with pseudomyxoma peritonei in 2006. The full-back was given only months to live but battled the disease and in 2009 was awarded an MBE. He also raised thousands of pounds for charity through the Steve Prescott Foundation.
He retired through injury in 2004, after spending a year out of the game with a broken kneecap, and following his diagnosis set up the foundation in 2007, which has to date raised more than half a million pounds.
Mike Rush said: "It is only fitting that one of St Helens' greatest sons has such an honour bestowed on him and we are delighted that St Helens Council has taken this decision. Steve will be missed by us all and the Club will also make sure he has a fitting legacy at Langtree Park."
Mike Denning Chairman of the Steve Prescott Foundation added: "Steve has inspired so many and has raised awareness of not only the very rare form of cancer which he battled but also the plight of those injured or fallen on hard times in the great game of Rugby League. "