Lipa is also up for British breakthrough artist alongside J Hus, Loyle Carner, Mercury Prize-winning Sampha and young rapper Dave, while she will face competition from Kate Tempest, Paloma Faith, Jessie Ware and Laura Marling for the British female solo artist prize.
Singer-songwriter Sheeran, whose "Divide" was the fastest-selling album ever for a male solo artist in Britain, is nominated in the best solo artist and best album categories for the February 21 awards.
Dua Lipa is also among four artists whose first full-length studio albums have been nominated.
In the solo male category, Sheeran faces former Oasis frontman Liam Gallagher, Stormzy, London rapper Loyle Carner and Rag'N'Bone Man.
In the best British band category, the return of Damon Albarn's Gorillaz sees the animated outfit nominated alongside London Grammar, Wolf Alice, The xx and Royal Blood.
Singer-songwriter Sampha, who won the Mercury Prize previous year, competes with Dua Lipa and rappers J Hus, Loyle Carner and Dave in the British breakthrough act category.
Taylor Swift, Lorde, Bjork, Pink and Alicia Keys are all nominated for best worldwide female while actor Donald Glover's musical alter-ego, Childish Gambino, earns a nod in the best global male category.
Foo Fighters - who are confirmed to perform at this year's ceremony - are up against Arcade Fire, The Killers, LCD Soundstyem and HAIM for best worldwide band.
The Brit Awards were past year dominated by David Bowie, who won two posthumous awards for best solo artist and best album for "Blackstar".