The 12-strong list also includes teen sensation Joss Stone, R&B star Jamelia and indie bands Keane and Snow Patrol.
The £20,000 prize honours the best album of the year by a UK or Irish act from a wide range of musical styles.
It is voted for by a panel of music experts, journalists and artists and will be handed out on 7 September.
Previous winners include Dizzee Rascal, PJ Harvey and Pulp.
Exceptional
Five of this year's shortlisted albums are debuts, but it is the second nomination for The Streets, who missed out to Ms Dynamite two years ago.
A spokesman for the judges said: "This is an exceptional year."
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