Found this code on msdn library and use it all the time. Code is pretty straight forward and easy to implement and customizable. Have fun using it.
<asp:TemplateField SortExpression="CategoryName"
HeaderText="CategoryName">
<EditItemTemplate>
<asp:DropDownList ID="DropDownList1" Runat="server"
DataSourceID="categoryDataSource"
DataTextField="CategoryName" DataValueField="CategoryID"
SelectedValue='<%# Bind("CategoryID") %>'>
</asp:DropDownList>
</EditItemTemplate>
<ItemTemplate>
<asp:Label Runat="server" Text='<%# Bind("CategoryName") %>'
ID="Label1"></asp:Label>
</ItemTemplate>
</asp:TemplateField>
For more related code read here…
