Shelford played 22 matches for the All Blacks in the early 1980s.
Macrae said he was honoured.
"I got to know Frank pretty well when he was playing down in Hawke's Bay. I respect him as a very good player and jointly to have our names on the cup I think is quite fitting.
"I am very proud to be a part of that and I am very much looking forward to get the opportunity to present the cup sometime in the near future."
Shelford, who lives in France, said he was happy and honoured and wished the teams all the best.
Bay of Plenty Rugby Union chief executive Mike Rogers said they were proud to be able to honour two former players who had contributed a great deal to Bay of Plenty and Hawke's Bay rugby.
"It is fitting that we are able to finally put up a cup for the sides to battle it out and claim who is the 'real' Bay. We are looking forward to the BNZ Battle of the Bays this Friday," he said.
Bay of Plenty play Hawkes Bay at the Rotorua International Stadium this Friday. Kick off is 5.45pm.
Playing History:
Ian Macrae:
Bay of Plenty
7 matches, 1962
Hawke's Bay
85 matches, 1963-71
All Blacks
45 matches, 1966-1970
Frank Shelford:
Bay of Plenty from 1977-87
121 games, 1977
Hawke's Bay in 1983
12 matches, 1983
All Blacks
22 matches, 1981, 1983-85
Information provided by Bay of Plenty Rugby Historian and Statistician Brent Drabble.