Her novel Normal People has been hailed as "a future classic".
Open to English-language writers from around the world, the Rathbones Folio Prize is the only literary prize in which all books genres – fiction, non-fiction, short stories or poetry – are considered.
The prize rewards the best work of literature published in the UK and Ireland that year and is decided by a panel of judges.
A shortlist of eight is chosen, with the winner – who will receive a cheque for £30,000 at the award ceremony on 20 May – to be announced on 4 April.
Novels dominate the 2019 longlist with 10 entries including House of Stone Novuyo by Rosa Tshuma (Atlantic), Land of The Living by Georgina Harding (Bloomsbury), Little by Edward Carey (Gallic Books), Mary Ann Sate by Alice Jolly (Unbound) and Milkman by Anna Burns (Faber).
Can You Tolerate This by Ashleigh Young (Bloomsbury), Ghost Trees by Bob Gilbert (Saraband), I Am Dynamite! - Friedrich Nietzsche by Sue Prideaux (Faber), The Crossway by Guy Stagg (Picador) and The Library of Ice by Nancy Campbell (Simon & Schuster) are the non-fiction titles on the longlist.
Murmur by Will Eaves (CB editions), Normal People by Sally Rooney (Faber), Ordinary People by Diana Evans (Chatto), Red Birds by Mohammed Hanif (Bloomsbury) and There, There by Tommy Orange (Harvill) round off the novels.
Milkman has already won Burns the Man Booker Prize, while Rooney won the Costa Novel Prize for Normal People. Just last week, Milkman was awarded the National Book Critics Circle prize for fiction in the US.