David Bowie's 'The Next Day' and the Arctic Monkey's fifth album 'AM' are among the 12 albums nominated for the 2013 Barclaycard Mercury Prize.

The 66-year-old legendary singer, whose latest offering was praised for its ''panache and a remarkable sense of urgency,'' and the indie rock band face stiff competition from a string of young artists including Jake Bugg, 19, for his self-titled album, 23-year-old Laura Marling's album 'Once I Was An Eagle' and James Blake, 24, for his album 'Overgrown.'

Other artists and albums on this year's shortlist include Foals for their third album 'Holy Fire', Laura Mvula's 'Sing to the Moon', Rudimental's debut release 'Home', as well as 'Silence Yourself' by Savages and the Villagers' 'Awayland'.

Jon Hopkins was also thrilled to get the nod for his album 'Immunity' alongside other acts he likes and respects.

When asked who his competition for the prize is, he told BANG Showbiz: ''I love the Arctic Monkeys album, it's an undeniably, massive, rock smash. Disclosure are cool, it's not the sort of music I'm familiar with but it's cool. I admire that kind of music.''

Disclosure - brothers Guy and Howard Lawrence - were shortlisted for their debut LP 'Settle', and they were so thrilled to be nominated they didn't realise there is a £20,000 cash prize as well.

The boys said: ''We only realised there was a money part of the prize today, it's more about the fact we're up for a Mercury and could possibly win one. It's a prestigious award.

''I think the quality of nominations for Mercury is always fantastic. We always watch it every year and they never nominate a bad act. We've been touring with Rudimental, who are fantastic, Foals are one of our favourite bands. James Blake is a big influence. We know him a bit now just from bumping into him at festivals. He's a great guy and we respect his music massively.''

The winner of the 2013 Prize will be announced at a ceremony at the Roundhouse in London on Wednesday 30 October 2013.

The shortlist in full:

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'