Harlequins' Conor O'Shea has been shortlisted alongside Leicester Tigers DoR Richard Cockerill and his counterpart at Exeter Chiefs Rob Baxter.
Northampton Saints' DoR Jim Mallinder is the holder of the award, which in the 2009-10 season was won by Andy Key of Leeds Carnegie.
All three men have had stellar seasons and their abilities have been recognised by a panel of media professionals - Jill Douglas (Freelance), Miles Harrison (Sky Sports), Alastair Eykyn (5Live), Mick Cleary (Daily Telegraph), Ian Stafford (Mail on Sunday), Nick Mullins (ESPN), David Rogers (Getty Images), Alan Pearey (Rugby World).
They were joined by Corin Palmer (Premiership Rugby's Head of Academies and Development) and Paul Morgan (Premiership Rugby's Communication Director) who chaired the panel.
"The ebb and flow of the Aviva Premiership Rugby season has ensured it has been a compelling race for the Aviva Premiership title," said Premiership Rugby Chief Executive Mark McCafferty.
"The undoubted strength of these three men reflects the size of the task for the panel and it looks like winning this award will be almost as hard as winning the Aviva Premiership Rugby title on 26 May."
The winner will be announced on 8 May at the sold out Aviva Premiership Awards, at The Hilton, Park Lane. The Awards night will be shown on ESPN.
QBE Director of Rugby of the Season 2011-12 shortlist
Conor O'Shea (Harlequins)
Richard Cockerill (Leicester Tigers)
Rob Baxter (Exeter Chiefs)
Previous Winners: Directors of Rugby of the Season
2010/11 - Jim Mallinder (Northampton Saints)
2009/10 - Andy Key (Leeds Carnegie)
2008/09 - Richard Cockerill (Leicester Tigers)
2007/08 - Dean Ryan (Gloucester Rugby)
2006/07 - Pat Howard (Leicester Tigers)
2005/06 - Philippe Saint-Andre (Sale Sharks)
2004/05 - John Wells (Leicester Tigers)
2003/04 - John Connolly (Bath Rugby)
2002/03 - Warren Gatland (London Wasps)
2001/02 - Conor O'Shea and Brendan Venter (London Irish)
2000/01 - Dean Richards (Leicester Tigers)
1999/2000 - Andy Robinson (Bath Rugby)