The Australian actress will compete with Amy Adams (American Hustle), Sandra Bullock (Gravity), Judi Dench (Philomena) and Meryl Streep (August: Osage County) for the award at the ceremony in March.
Dench, who plays lovable Irish pensioner Philomena Lee as she tries to find her adopted son, is the only Brit in the Best Actress category.
She is joined in the Best Supporting Actress category by Sally Hawkins, who has been nominated for her performance in Blue Jasmine, in which she plays Jasmine's kooky adopted sister.
Oscars 2014: Best Actor and Actress nominees
Oscars 2014: Best Actor and Actress nominees
1/20 Cate Blanchett (Best Actress)
Blanchett has been nominated for Best Actress for her role as a deeply troubled New York socialite in Blue Jasmine.
2/20 Sandra Bullock (Best Actress)
Bullock is nominated for her performance as a medical engineer in Alfonso Cuaron's space adventure Gravity.
3/20 Meryl Streep (Best Actress)
Here pictured left with Julianne Nicholson and Juliette Lewis, Streep has earned a nod for her performance as Violet Weston in August: Osage County.
4/20 Judi Dench (Best Actress)
British actress Dench is up for Best Actress for her role as Philomena Lee in Stephen Frears' Philomena.
5/20 Amy Adams (Best Actress)
Adams is nominated for Best Actress for her role as Sydney Prosser in American Hustle - here pictured left with Bradley Cooper, Jeremy Renner, Christian Bale and Jennifer Lawrence.
Francois Duhamel/ Annapurna Productions
6/20 Leonardo DiCaprio (Best Actor)
DiCaprio has picked up his fourth Oscar nomination - but will he finally win? - for his performance as debauched stockbroker Jordan Belfort in The Wolf of Wall Street.
7/20 Chiwetel Ejiofor (Best Actor)
British actor Ejiofor has been nominated for an Oscar for his role as Solomon Northup in 12 Years a Slave.
8/20 Matthew McConaughey (Best Actor)
McConaughey is up for Best Actor Oscar for his role as an emaciated AIDS patient who smuggles anti-viral drugs into the US in Dallas Buyers Club.
9/20 Christian Bale (Best Actor)
British actor Bale has earned a nod for his performance as con artist Irving Rosenfeld in American Hustle.
10/20 Bruce Dern (Best Actor)
Dern, left, is nominated for his role in Nebraska as elderly father Woody Grant who embarks on a trip with his estranged son.
11/20 Bradley Cooper (Best Supporting Actor)
Cooper, left, has earned an Oscar nod for his supporting role as a wild FBI agent in David O Russell's American Hustle.
12/20 Barkhad Abdi (Best Supporting Actor)
Abdi is up for Best Supporting Actor for his performance as a Somali pirate who hijacks Tom Hanks' ship in Captain Phillips.
13/20 Michael Fassbender (Best Supporting Actor)
Michael Fassbender, left, is nominated for his role as plantation owner Edwin Epps in Steve McQueen's 12 Years a Slave.
14/20 Jared Leto (Best Supporting Actor)
Leto has picked up a Best Supporting Actor nomination for his role as a transgender AIDS patient in Dallas Buyers Club.
15/20 Jonah Hill (Best Supporting Actor)
Hill has earned a nod for his supporting role as a charismatic salesman in The Wolf of Wall Street - pictured here, left, in a scene with Best Actor nominee DiCaprio.
16/20 Julia Roberts (Best Supporting Actress)
Julia Roberts, here seen embracing Best Actress nominee Meryl Streep, is nominated for her role in August: Osage County.
17/20 Jennifer Lawrence (Best Supporting Actress)
Lawrence has been nominated for her role as Rosalyn Rosenfeld in American Hustle - she won Best Actress for Silver Linings Playbook last year.
18/20 Lupita Nyong'o (Best Supporting Actress)
Kenyan actress Nyong'o has earned a nod for her role as Patsey in 12 Years a Slave, here pictured with Best Supporting Actor nominee Michael Fassbender.
19/20 Sally Hawkins (Best Supporting Actress)
Sally Hawkins, left, and Andrew Dice Clay in a scene from the Woody Allen film, Blue Jasmine. British actor Hawkins is nominated for her role as Jasmine's sister Ginger.
20/20 June Squibb (Best Supporting Actress)
Squibb is nominated for her role as Kate Grant, wife of Best Actor nominee Bruce Dern's character in Alexander Payne's Nebraska.
Jennifer Lawrence, meanwhile, may have a chance to redeem herself following that memorable trip up the stairs at the 2013 awards. The American Hustle star is nominated for Best Supporting Actress for her role as Rosalyn Rosenfeld in O Russell’s crime comedy.
Streep is nominated for August: Osage County, in which she plays the strong-willed Violet Weston, while Amy Adams has earned a nod for her role as con artist Sydney Prosser in David O Russell’s American Hustle.
Julia Roberts (August: Osage County), June Squibb (Nebraska) and Kenyan newcomer Lupita Nyong’o (12 Years a Slave) complete the nominations for Best Supporting Actress.