"Throughout the tournament, as well as in the final against Portugal, he showed leadership quality and skill and technical ability as well as his character," said French coach Gerard Houllier, a member of the UEFA panel and the former Liverpool manager.
A hard-working midfielder Zagorakis was also named man of the match for the final which completed a remarkable success for Greece, who had been 80-1 outsiders before the tournament.
Zagorakis will be presented with his trophy at a gala in Monaco on August 26.
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The 32-year-old AEK Athens midfielder was one of five Greek players named in an 'All-Star Squad' by the panel.
Goalkeeper Antonios Nikopolidis, who kept three clean sheets in the knock-out stage, was selected along with the Czech Republic's Petr Cech as one of the two goalkeepers in the squad.
Greek centre-half Traianos Dellas and right-back Georgios Seitaridis featured among the seven defenders while Zagorakis was in midfield and Sunday's goalscorer Angelos Haristeas was one of the forwards.
UEFA All Star Squad:
Goalkeepers: Petr Cech (Czech Republic), Antonios Nikopolidis (Greece)
Defenders: Sol Campbell (England), Ashley Cole (England), Traianos Dellas (Greece), Olof Mellberg (Sweden), Ricardo Carvalho (Portugal), Georgios Seitaridis (Greece), Gianluca Zambrotta (Italy)
Midfielders: Michael Ballack (Germany), Luis Figo (Portugal), Frank Lampard (England), Maniche (Portugal), Pavel Nedved (Czech Republic), Theodoros Zagorakis (Greece), Zinedine Zidane (France)
Forwards: Milan Baros (Czech Republic), Angelos Haristeas (Greece), Henrik Larsson (Sweden), Cristiano Ronaldo (Portugal), Wayne Rooney (England), Jon Dahl Tomasson (Denmark), Ruud van Nistelrooy (Netherlands)
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