Artists can be inducted 25 years after their debut release and both the 'Californication' hitmakers and rapper LL Cool J have made the shortlist in their first year of contention for the honour.
Red Hot Chili Peppers drummer Chad Smith said: "It's a real honour to be nominated in our first year of eligibility. Obviously the Hall of Fame has excellent musical taste."
After 10 years of being snubbed by the nominating committee, 'Crazy Nights' rockers KISS have received their first nomination for induction, after previously blasting the Hall of Fame for ignoring them.
Founder member Gene Simmons complained last year: "There are disco bands, rap bands, Yiddish folk song bands in the Rock and Roll Hall of Fame, but not KISS. I believe we have more gold records in America than any other group, but it's OK."
However, the nomination could cause them problems with the ballot listing the four original members, Gene, Paul Stanley Ace Frehley and Peter Criss but Paul - who along with Gene remains in the group - is unsure the right people are listed.
Paul said: "There have been a lot of people who've been a part of this, some longer than others and some who deserve recognition more than others. Even the non-make-up years produced some platinum and double-platinum albums, and we had some very healthy sales in terms of albums and concerts through the '80s and '90s. So if we should ever be asked to accept induction into the Rock and Roll Hall of Fame, it would be something to think about."
Five of the 12 nominees will be chosen for induction from ballots cast by more than 500 music industry voters.
The chosen five will be revealed in January, with an induction ceremony taking place on March 15 at New York's Waldorf Astoria hotel.
Rock and Roll Hall of Fame 2010 nominees:
LL Cool J
Red Hot Chili Peppers