The biennial award of 60,000 pound, an offshoot of the main Man Booker Prize presented to the UK and Commonwealth writers only, was first won by Albanian novelist Ismael Kadre in 2005.
Rushdie has won both the Man Booker and the Booker of Bookers for his novel "Midnight's Children."
Other well-known figures contending for the prize include Nigerian writer Chinua Achebe, Philip Roth and Don DeLillo of the US, Carlos Fuentes of Mexico, one of the trailblazers of the Latin American "boom" of the 1960s, Margaret Atwood, Michael Ondaatje and Alice Munro of Canada, Harry Mulisch of Holland and France's Michel Tournier.
The award, designed "to highlight one of writer's continued creativity, development and overall contribution to fiction on the world stage," is presented to a living author who has published fiction either originally in English or whose work is available in English translation.
The award will be announced in June.
The Judges' List was announced by the chairman of judges, Professor Elaine Showaiter in Toronto.