The Israeli film Ajami has been nominated for Best Foreign Lanugae Film, the third consecutive year an Israeli film has been nominated. The film was recently screened in London as part of the UK Jewish Film Festival.
Last year, Israeli animated film Waltz With Bashir was hotly tipped to win the prize but was beaten by Japanese film Departures.
The film, which is co-directed by Palestinian Scandar Copti and Israeli Yaron Shani follows the lives of young people, Jewish and Arab, growing up in Jaffa.
The Academy Awards ceremony is set for March 7.