The award recognises a coaching career that has inspired generations of New Zealand athletes particularly in middle distance running.
Athletics NZ chief executive Cam Mitchell conceded it was "potentially overdue".
Jelley's guidance famously helped Sir John Walker win gold in the 1500m at the 1976 Montreal Olympics.
His journey as a coach began in 1959, and over the following decades he mentored over a 100 middle-distance runners, including Olympians, Commonwealth Games representatives and national record holders.
He officially retired as a coach after the 2016 Rio Olympics.
A former teacher and principal, Jelley combined his skills in education with his love for athletics, fostering both physical and personal development in his athletes.
He was awarded an OBE for services to sport in 1982 and was among the first inductees into the Athletics New Zealand Coaches Hall of Fame.
Jelley said he was "rather surprised." to receive the recognition as "I hadn't really thought about, but it's a great honour."
Reflecting on his decades of involvement in the sport Jelley said: "I remember Sir Peter Snell ran the world record 800 in ordinary old spikes on a damp track and broke the world record. And I think his performance would be equal to anything that they do now, even though they, you know, [run] 1:41.
"I think his performance was actually fantastic. The other big things that have happened since I've been in athletics... is that there are just as many females as males [running], and it's just tremendous," he said.
Jelley had been a pioneer of women's coaching, Mitchell said.
"It's great to see some of that recognised... So this is very much a well-deserved, and potentially overdue award. We're delighted to acknowledge you."
