The declared purpose of the prize is to "perpetuate and honor the work of the eminent novelist and also to stimulate the creative activity of Spanish language writers".[1]
It is awarded by the government of Venezuela, through the offices of the Rómulo Gallegos Center for Latin American Studies (Celarg). The first prize was given in 1967. It was awarded every five years until 1987, when it became a biannual award.