The competition, which names the album of the year, also includes Sheffield troubadour Richard Hawley, soul singer Jessie Ware and BBC Sound Of 2012 winner Michael Kiwanuka.
Completing the shortlist are Django Django, Lianne La Havas, Roller Trio, Field Music, Sam Lee and Maccabees.
The winner of the £20,000 prize will be announced on 1 November.
Last year, PJ Harvey became the first act to ever win the Mercury Prize twice, for her album Let England Shake, after previously winning in 2001.
Several heavily-tipped albums failed to make this year's list, including Kate Bush's 50 Words For Snow, Coldplay's Mylo Xyloto and Florence + The Machine's Ceremonials.
This year, Channel 4 takes over coverage of the event from the BBC and will broadcast the ceremony, featuring live performances from each of the nominees, from its new home at Camden's Roundhouse.
The four-year agreement also includes a series of intimate Album of the Year Live gigs around London from the 12 shortlisted acts.
Organisers said the changes will help generate more interest in the artists and bands nominated, while giving fans more access to live events and online content.
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