The full list of artists nominated for the award, which recognises and celebrates music in the UK and has a reputation for highlighting both new talent and more established bands and artists, is below...
Arctic Monkeys - AM
David Bowie - The Next Day
Disclosure - Settle
Foals - Holy Fire
Jake Bugg - Jake Bugg
James Blake - Overgrown
Jon Hopkins - Immunity
Laura Marling - Once I Was An Eagle
Laura Mvula - Sing to the Moon
Rudimental - Home
Savages - Silence Yourself
Villagers - Awayland
The shortlist of 12 Albums of the Year is chosen by an independent judging panel and "provides a snapshot of the year in music, recognising artistic achievement across a range of music genres". This means the Mercury Prize is judge on artistic merit rather than sales success, such as the Brit Awards.
Chair of Judges, Simon Frith, said: “This year’s Barclaycard Mercury Prize shortlist celebrates a fascinating year for British and Irish music, marked by a wonderful range of musical voices – urgent, reflective, upbeat and tender, acoustic and electronic, and all with something intriguing to say.”
The nominations announcement was made by presenter and broadcaster Lauren Laverne at London's The Hospital Club on Wednesday.
A £20,000 cheque will be awarded to the winning album at the end of next month.
Last year, Alt-J beat acts including Plan B, Richard Hawley and Django Django to the Album of the Year gong for 'An Awesome Wave'.
Who should the prize go to? Let us know in the comments below.
The Barclaycard Mercury Prize Awards Show is at the Roundhouse on 30 October.