Lennon, who has steered his side to the Scottish Premiership title, has been nominated alongside top-flight rivals Derek McInnes, Tommy Wright and Stuart McCall.
McInnes guided Aberdeen to Scottish League Cup glory this season - the Dons' first trophy in 19 years - and his side are currently in a fight with McCall's Motherwell for the Premiership runners-up slot.
Wright's St Johnstone have secured a top-six finish for the third year in a row and has led his team to the Scottish Cup final, where they will face Dundee United on 17 May.
Wright said: "If you look at it there could be half a dozen guys who deserve to win the Manager of the Year award. You could make a case for plenty of guys because there are so many managers doing really good work this season."
The nominees were unveiled by Gordon Strachan in Glasgow on Wednesday.
"It is a toss up - and there's friends of mine in there and I don't want to upset anybody," the Scotland manager said.
"They have brought entertainment to Scottish football and it's not just their own clubs - they've developed Scottish football this season.
"If we get teams like Hibs, Hearts, Rangers back playing at the top of their level, it would be a right good league again."
Last year, Queen of the South manager Allan Johnston claimed the award after winning the Scottish Challenge Cup and the Scottish Second Division title in his first season in management; he is now in charge at Kilmarnock.
All 42 SPFL club managers, plus Strachan himself, have a vote and the winner will be announced at a ceremony in Glasgow on Sunday 27 April.