Others include political biopic Milk, animated fantasy Wall-E and Brad Pitt's The Curious Case of Benjamin Button.
Clint Eastwood's Gran Torino and comic book blockbuster Iron Man also feature alongside the independent dramas Frozen River and Wendy and Lucy.
Frost/Nixon and The Wrestler complete the list, compiled by a panel of filmmakers, reviewers and academics.
Unlike other awards bodies, the institute does not rank films or pick one as the year's best.
The filmmakers behind the AFI's Top 10 choices will be honoured at a luncheon on 9 January.
Longlist
Meanwhile, The Dark Knight has also been named as one of the 15 semi-finalists for the best visual effects Oscar.
Others include the second Chronicles of Narnia film, Prince Caspian, and the latest James Bond adventure, Quantum of Solace.
Cloverfield, The Curious Case of Benjamin Button and the fourth Indiana Jones film also feature on the longlist, to be whittled down to seven in early January.
Three will then be nominated for the Visual Effects prize, to be handed out at the Oscar ceremony on 22 February.
Last week, the late Heath Ledger was nominated for a posthumous Golden Globe for his role as the Joker in The Dark Knight.
