The sum beats the bonus received by John Mack of Morgan Stanley, who was given just over $41 million last week, and sets the record as the largest amount ever paid to a Wall Street chief executive.
Around half of the payment ($27.3 million) is being made in cash, while $15.7 million is in restricted stock options to buy Goldman Sachs stock.
Mr Blankfein, who became chairman and chief executive of the bank in June, is reported to earn a salary of $600,000.
Goldman Sachs reported record profits for 2006 of $9.5 billion and its share price has risen by nearly 60 per cent in the last 12 months - a performance that appears to have justified the huge bonus.
Despite a good year in general for Wall Street, Goldman's rivals have failed to keep up with its recent earnings growth or share price.