Elbow, The XX and PJ Harvey have won the Mercury Prize in recent years.
Rapper Plan B and Mercury Prize winners Alt-J are also cited in two categories.
Their latest album Only Revolutions has reached 300, 000 sales in the UK and was nominated for the highly prestigious Mercury Prize.
Mercury Prize managing director Dan Ford said the plans would generate "more interest in the shortlisted artists and albums than ever before".
The London troubadour sold 500, 000 copies of his debut album Home Again around the world last year and was nominated for the Mercury Prize.
Last year, PJ Harvey became the first act to win the Mercury Prize twice, for her album Let England Shake, after previously winning in 2001.
The xx, who won the Mercury Prize in 2010, will have a residency at the festival, playing for fewer than 100 people at a time.
Sir Kenneth Branagh and Mercury Prize-winning band The xx will be among the highlights of next year's Manchester International Festival, each promising intimate shows in unusual venues.
The record, which was first discussed in 2007, was due to have featured contributions from Hegarty, who won the Mercury Prize for his 2005 album I Am A Bird Now.
Other highlights will include Sir Kenneth Branagh performing in Macbeth in a deconsecrated church and Mercury Prize-winning band The xx playing 18 gigs to tiny crowds in a secret venue.
Names on the Other Stage include Portishead - almost 20 years after they released their debut album Dummy - along with Smashing Pumpkins, Mercury Prize-winners Alt-J and John Lydon's band PiL. The XX, The Lumineers, Alabama Shakes and Foals are also included on the bill.
The quartet Alt-J, whose "An Awesome Wave" won last year's Mercury Prize as Britain's best album, did much with little on stage as odd two-part vocal harmonies, a gently picked electric guitar, lush synth lines and syncopated percussion coalesced into a distinctive blend that united folk, prog rock, electronica, show tunes and hip-hop.
WSJ: The State of Things | Coachella Valley Music & Arts Festival | Jim Fusilli
The production will feature music written and performed by Antony Hegarty from the Mercury-prize winning Antony and The Johnsons.
Coverage of the prestigious Mercury Music Prize ceremony will move from BBC Two to Channel 4 and be cut from BBC radio, organisers have announced.
It is not just a US phenomenon - new urban stars have won the UK's Mercury Music Prize for the best album of the year for the last two years, while even Prince Charles is getting in on the act, hosting an urban music festival in May.
BBC: NEWS | Entertainment | The rise and rise of urban music
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