Science-fiction epic 'Avatar' and gritty Iraq war drama 'The Hurt Locker' will battle for supremacy at the Oscars after topping the nominations with nine nods each on Tuesday.

James Cameron's 'Avatar' ? the most expensive movie ever made and the highest grossing film of all time ? picked up a slew of nominations including best picture and best director.

The nine nominations for the low budget 'The Hurt Locker' included a nod for director Kathryn Bigelow ? Cameron's ex-wife ? as well as best picture, best actor and best original screenplay.

'District 9', South African-born director Neill Blomkamp's dazzling science-fiction film about aliens stranded in a Johannesburg township, also cracked the Best Picture nod.

Meanwhile, 'Invictus' stars Morgan Freeman and Matt Damon both cracked the Oscar nod. Freeman is up for the Best Actor Award for his portrayal of Nelson Mandela, while Damon is nominated for his role as Francois Pienaar.

Tuesday's nominations were released in a dawn announcement at the Academy of Motion Picture Arts and Sciences Samuel Goldwyn Theater in Beverly Hills attended by Hollywood star Anne Hathaway.

Bigelow is only the fourth woman ever to be nominated for directing and the first since Sofia Coppola received a nod for 'Lost in Translation' in 2003. No woman director has ever won the Oscars top prize.

However, 'The Hurt Locker', a tense thriller about a US army bomb disposal squad operating in Iraq, has emerged as the favorite to land the Oscars top best picture prize when the 82nd Academy Awards are presented on March 7.

Bigelow's film has already won a slew of awards this year which are regarded as reliable indicators of likely Oscars success.

This year's best picture race was expanded to 10 films by the Academy in a move analysts have said was intended to help boost television ratings for the awards show.

Vying for the best picture race alongside 'Avatar' and 'The Hurt Locker' is Quentin Tarantino's bloody World War Two revenge film 'Inglourious Basterds', which weighed in with eight nominations.

It was followed by the independent 'Precious', about the struggles of an illiterate abused teenager, which scored six nominations, including best picture and best director.

'Up', Pixar's charming animated film about a crotchety widower who ties balloons to his house and floats to South America, was also included in the best picture category. It is the only second time in Oscars history that an animated film has made it into the best picture race following Disney's 'Beauty and the Beast' in 1992.

Other best picture nominees included British drama 'An Education', recession-era dramedy 'Up In the Air', Joel and Ethan Coen's 'A Serious Man', and the Sandra Bullock drama 'The Blind Side'.

There were few major surprises in the acting nominations, where Jeff Bridges and Bullock are widely tipped to win the best actor and actress awards.

Bridges was nominated for his performance as a washed-up country singer in 'Crazy Heart'. Other nominees included George Clooney for 'Up In the Air', Colin Firth for 'A Single Man,' Jeremy Renner for 'The Hurt Locker' and Morgan Freeman for 'Invictus'.

Bullock's rivals for best actress include veteran Meryl Streep ? picking up her record 16th nomination for 'Julie and Julia'. Other nominees included Britain's Helen Mirren for 'The Last Station', Gabourey Sidibe for 'Precious' and Carey Mulligan for 'An Education'.

In the best supporting actress category, Mo'Nique is expected to prevail for her powerful performance as an abusive parent in 'Precious'. She faces competition from last year's winner Penelope Cruz, nominated again for 'Nine', and Maggie Gyllenhaal in 'Crazy Heart'.

Vera Farmiga and Anna Kendrick round out the nominees for their performances in 'Up In the Air'.

As expected, Christoph Waltz is nominated in the best supporting actor category for 'Inglourious Basterds', along with Matt Damon for 'Invictus', Woody Harrelson for 'The Messenger', Christopher Plummer for 'The Last Station', and Stanley Tucci for 'The Lovely Bones'.

In the race for best foreign language film, Germany's 'The White Ribbon' was nominated along with France's 'Un Prophete' and Israel's 'Ajami'.

South America was well represented, with Peru's 'The Milk of Sorrow', and Argentina's 'El Secreto de Sus Ojos'.

Jasyn and Dave from Zoopy.com make their Oscar predictions! Watch the video below.