Sgt Mark Wright was injured in February 2012 while restraining a "dangerously out of control" man armed with two knives.
Police were called after reports that a number of women had been assaulted at the house.
They were told a woman and two children were still inside with the man.
Sgt Wright was about to force entry to the house when the man emerged, armed with two knives.
When the officer and a colleague tried to restrain him he was stabbed in the head.
"The cut to the back of the head cut right through the tissue around the back of my head, right down to my skull," Sgt Wright said.
"There were puncture wounds to my face and forehead, narrowly missing my eye."
Although seriously wounded, Sgt Wright's actions were judged to have ensured the safety of the two young children, the woman and his two colleagues.
His attacker was arrested, charged and subsequently sentenced to seven years in prison.
Sgt Wright said while he was proud to have been awarded the medal, his colleagues should share the honour.
"In fairness, this is happening to police officers every day, they're facing similar dangers," he said.
"In receiving this award I can honestly say I am extremely proud, but I am truly humbled as well.
"I accept it not just on behalf of myself, my family and my friends, but for all my colleagues."
Sgt Wright will receive his medal at Buckingham Palace later this year, although the date has not yet been set.
A police officer who has been awarded the Queen's Gallantry Medal after being stabbed in the head at a house in Lurgan has said he is "truly humbled".