Ian McKellen is already a knight, but his highest British honor is right around the corner.

Queen Elizabeth II has named McKellen a Companion of Honor on her New Year's Honors list -- the highest royal honor in Britain -- for his "outstanding achievements as an actor and also for his work in championing the causes of diversity."

The honor is limited to 65 living people.

"I am honoured to join an Order which includes such distinguished practitioners in the arts. It is particularly pleasing that 'equality' is included in my citation," the openly gay McKellen said in a statement on his Web site.

McKellen played Gandalf in the "Lord of the Rings" movies and Magneto in the "X-Men" movies. He's also starred in such films as "The Da Vinci Code," "Richard III" and "Gods and Monsters," which earned him a Best Actor Oscar nomination.

Most recently, McKellen narrated the fantasy adventure "Stardust" and voiced the role of Iorek the Bear in the mystical adventure "The Golden Compass."

The 68-year-old performer is also an accomplished stage actor, recently performing in London and the U.S. in Shakespeare's "King Lear."

Also on the Queen's New Year's Honors list is Richard Griffiths, who known for playing Uncle Vernon in the "Harry Potter" movies and from "The History Boys" on stage and in the movie.

Griffiths has been made an Officer of the Order of the British Empire, or OBE.