The London-born singers, who recently toured together, lead the way for this year`s coveted songwriting honours, though they will not face each other in any of the categories.
Lily is nominated for Best Song Musically and Lyrically and PRS for Music Most Performed Work for her track `The Fear` - which was co-written by Greg Kurstin - while Dizzee received nods in the Best Contemporary Song category for `Bonkers` and Album Award group for `Tongue N` Cheek`.
Dizzee - real name Dylan Mills - will fight it out for the Best Contemporary Song prize with Bat For Lashes star Natasha Khan for her hit `Daniel` and La Roux`s `In For The Kill`.
In the Album category, the rapper will be up against Paolo Nutini for his `Sunny Side Up` LP and former Divine Comedy star Neil Hannon`s side project The Duckworth Lewis Method for their concept album of the same name about cricket.
Neil - who wrote the LP with Thomas Walsh - admits he is both thrilled and shocked to be up for the prestigious accolade.
He told BANG Showbiz: "It`s literally amazing to be nominated. The Ivor Novellos are `the awards` and the ones where you are actually judged by people who know something about songwriting so it`s a delight.
"I was absolutely stunned. I mean that doesn`t do justice to the open-mouthed shock involved when I found out. I mean we had a good innings, if you pardon the pun. Last year was amazing, we got to go to a lot of cool places and see a lot of cricket and have fun. But then we sold quite a few records alarmingly, which doesn?t usually happen to me. And then it seems to have had a trickle down effect, as Ronald Regan used to put it."
Although Neil is delighted to be in the running, he isn`t confident his LP will beat Paolo or Dizzee.
He added: "I don`t fancy our chances to be honest, but that`s not a big deal. Just to be nominated is astounding, especially with the likes of Paolo and Dizzee. I like Paolo`s music, obviously Dizzee`s stuff is not really my scene but I know that he can talk extremely fast on records so that can`t be bad. Maybe he likes cricket? Maybe we could do a collaboration, I`ll wear grimey whites."
Lily faces competition from The Leisure Society`s `Save It For Someone Who Cares`, which was written by their guitarist Nick Hemming - who received a nomination last year when he was an unpublished writer - and newcomers Patch William for their track ?The Last Bus? in the Best Song Musically and Lyrically category.
The PRS for Music Most Performed Work also had nominations for James Morrison`s `Broken Strings`, which he recorded with Nelly Furtado, and Girls Aloud`s `The Promise`, which was penned by their songwriting team.
The Ivor Novello Awards take place at London`s Grosvenor House Hotel on May 20.
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