The two will go head to head in four categories — best pop act, best female act, best song and best video.

Perry, 25, was also nominated for best world stage performance while Lady Gaga, 24, is in the running as well for best live act.

Both singers burst unto the music scene in 2008, Perry with her breakthrough single “I Kissed a Girl” and Lady Gaga with her debut album “The Fame”.

Rapper Eminem has four nominations for best song, best male act, best hip hop performer and best video for his collaboration with Rihanna on “Love the Way You Lie”.

Perry and US rock band Linkin Park, who are nominated for best rock act and best live act, will perform at the annual awards ceremony, which will be held at Madrid’s new Caja Magic sports complex on November 7.

Last week Lady Gaga, who is as famous for her unusual fashion sense as for her musical sensibilities, took home eight prizes at the MTV Video Music Awards in Los Angeles, including for best video.

Viewers can vote for their picks in the general categories on the website http://ema.mtv.co.uk/vote from Monday until November 4.

It will be the second time the annual event — one of pop music’s biggest nights outside of the United States with a potential global television audience of over 600 million people — has been held in Spain after Barcelona in 2002.

Rhythm and blues superstar Beyonce scooped up three wins for best female artist, best song for “Halo” and best video for her number one smash “Single Ladies” at last year’s MTV Europe Music Awards held in Berlin.

The awards ceremony has been held each year since 1994. Past performers at the event include Britney Spears, Justin Timberlake, Madonna and U2.

Past host cities include Copenhagen in 2006, Liverpool in 2008, Lisbon in 2005, Rome in 2004 and Paris in 1996.