The 15-strong list is completed by Mary J. Blige, Mariah Carey, Cher, Eric B. & Rakim, Kool & the Gang, Sinéad O'Connor, Sade and A Tribe Called Quest.
Rock Hall Chairman John Sykes says: "This remarkable list of Nominees reflects the diverse artists and music that the Rock & Roll Hall of Fame honours and celebrates.
"Continuing in the true spirit of Rock & Roll, these artists have created their own sounds that have impacted generations and influenced countless others that have followed in their footsteps."
Ozzy's nomination comes just four months after Sharon Osbourne said he should be inducted into the Rock Hall as a solo artist.
The Prince of Darkness already has a place in the Rock Hall as the frontman of Black Sabbath, who were inducted in 2006.
Confirming Ozzy's nomination, the Rock Hall says in a statement: "Ozzy Osbourne is rock’s beloved Prince of Darkness, a key architect of heavy metal, and one of the most successful solo artists of all time.
"Ozzy’s voice is instantly recognizable – haunting, powerful, raw, sincere – and capable of conveying a wide array of emotions. As a live performer, he is a force of nature, with onstage charisma and showmanship unlike any other.
"Ozzy brings theatricality to his electrifying performances, captivating audiences with his magnetic energy and rightly earning the title Godfather of Heavy Metal."
To be eligible, an artist must have released its first commercial recording at least 25 years earlier.
Fans can vote for their favourites from the listed nominees at the Rock Hall website.
The successful inductees will be announced in April, with the induction ceremony set to take place later in the year.
On Jane's Addiction being nominated, the Rock Hall says: "Jane’s Addiction thrust subversive, underground sounds into the mainstream, blazing the trail for Soundgarden, Nirvana, and other alternative artists."
And the organization describes Oasis as "among the most successful and influential acts of all time, selling over a hundred million records and inspiring countless bands like the Killers and Arctic Monkeys."