Handke won the 2019 prize for "for an influential work that with linguistic ingenuity has explored the periphery and the specificity of human experience," the Academy said in a statement.
The 2018 prize, delayed by one year after a sexual assault scandal rocked the award-giving Academy, went to Tokarczuk for "for a narrative imagination that with encyclopaedic passion represents the crossing of boundaries as a form of life." Handke established himself as one of the most influential writers in Europe after World War Two, the Academy said, with a body of work that contains novels, essays, notebooks and dramatic works.
He is also known for co-writing the script of the critically-acclaimed 1987 film "Wings of Desire." Tokarczuk, 57, trained as a psychologist before publishing her first novel in 1993.
Since then, she has produced a steady and varied stream of works and her novel "Flight" won her the high-profile Man Booker International Prize last year.
She was the first Polish author to do so.
She has courted controversy in her native Poland by touching on dark areas of the country's past that contrast with the version of history promoted by Poland's ruling nationalist party, Law and Justice (PiS).