Hutton, who joined the club’s board 15 years ago, passed away in April after being diagnosed with leukaemia.
He had stepped down last year due to his declining health.
Raith Rovers’ main stand at Stark’s Park will be changed officially to the Turnbull Hutton Stand in July, when the club is scheduled to play a friendly against Celtic to mark the occasion.
Eric Drysdale, the club’s chief executive, said: “Turnbull did a huge amount for this club and Scottish football and he departed this life far too young. And we wanted to make sure his name will never be forgotten.
“It is particularly appropriate because around 12 years ago, when this club was in financial trouble, we needed to replace the roof of the main stand but we simply did not have the money.
“Turnbull paid for that out of his own pocket, which just sums up the man. It’s fitting that stand will bear his name now.”