Salah, who has scored 23 goals in all competitions since arriving at Liverpool from Roma, was joined on the final shortlist by Reds team-mate Sadio Mane, who finished second. That marked an improvement on his third place finish last time round.
Borussia Dortmund striker and 2015 winner Pierre-Emerick Aubameyang placed third.
Salah is the first Egyptian winner of the coveted individual prize since Mohamed Aboutrika in 2008. Fellow countryman Mido was a third place finisher in 2002.
2002 was also the year that last saw a Liverpool player win, with El-Hadji Diouf scooping a second successive gong after also previously winning while at Lens in 2001.
Unfortunately for Liverpool, Salah has been ruled out of the Merseyside derby in the FA Cup third round this weekend as a result of minor groin injury.
Salah was on the score-sheet when Liverpool met Everton in the Premier League in December, but will be missing from the squad as red meets blue at Anfield again on Friday night.
Philippe Coutinho, heavily tipped to join Barcelona in a deal worth up to €150m at some point before the end of the month, is nursing a thigh injury and will miss the game.