But it failed to win the Bafta panel's award for the best feature film - that prize went to The Incredibles.
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It will compete in the categories of best feature film, Paul Laverty for best writer, and Paul Brannigan and Siobhan Reilly for best actor and actress.
Chopard, which is an official sponsor of the festival, has provided the Palme d'Or trophy awarded to the director of the best feature film for the past 15 years.
They will also reinstate the prestigious Michael Powell Award for best British feature film in 2012.
Its Oscar success comes after it was named best animated feature film awards at the Baftas and the Golden Globes.
Other winners included Dexter Fletcher's directorial debut Wild Bill, which won best first feature film for him and co-writer Danny King.
Animated films are well represented on the list with four entries, led by WALL-E, which is nominated for a Best Animated Feature Film Oscar.
The film featuring balding cheese-lover Wallace and his canine companion Gromit came out on top in the Academy Awards best animated feature film category.
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Studio Ghibli's "Spirited Away, " which won the Academy Award for Best Animated Feature Film in 2003, remains the top-grossing Japanese film in history, and Miyazaki, who co-founded the studio in 1985, has been called "Japan's Walt Disney" for his impact on the country's animation culture.
Jurors said the film, which picked up the best first feature award at the Berlin International Film Festival in February, "offers us a transcendent tale of hope and perseverance in a world that few Westerners ever have the chance to see".
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Toy Story 3, the highest grossing film of 2010, won Best Animated Feature and Alice in Wonderland, the second highest earning film, won for costume design and art direction.
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Dame Judi, who plays spy chief M, told BBC Radio 4 it was a "great pity" the movie did not feature in the best film, director or acting categories.
The best animated feature went to "Ratatouille, " a computer-animated Pixar film directed and written by Oscar winner Brad Bird ("The Incredibles").
Martin Scorsese was named best director for Hugo, a family film that marked his first 3D feature, while Steven Spielberg received the animated feature prize for The Adventures of Tintin.
Aubrey Plaza and Jake Johnson co-starred in the film, which also earned a best first screenplay award and nomination for best first feature at the Independent Spirit Awards.
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