They are joined by formula one ace Daniel Ricciardo and cricketer Mitchell Johnson, as the odd ones out.
Named after famed batsman Don Bradman, "The Don" Award is presented by the Sport Australia Hall of Fame to a sportsperson who has most inspired the nation during the past year.
Pearson, who picked up her first Don following her successful London Games campaign in 2012, said the award marked a "pinnacle in an athlete's career".
"Don Bradman symbolised everything that was wonderful in sport," the hurdler, who defended her Commonwealth crown after a tough preparation, said.
Lassila is also a second-time nominee, having won the Don Award in 2010 after her Vancouver Winter Olympics victory.
"What was more important than any 'hardware' I've ever received was reaching my personal quest of becoming the first woman to ever perform a quad twisting triple somersault," she said.
"I am really humbled to be nominated for the Don Award for a second time."
Kygrios' giant-killing Wimbledon run - where he pulled off one of the biggest upsets in Wimbledon history by beating world No.1 Rafael Nadal to reach the quarter-finals - scored him a nod.
Mills was recognised for becoming the first player of Australian indigenous heritage to win an NBA championship ring, playing a key role in the San Antonio Spurs' victory.
Shelley defeated the mighty Kenyans to win the Commonwealth marathon race in Glasgow, while Ricciardo's Grand Prix wins in Canada, Hungary and Belgium got him a spot on the shortlist. Johnson's Ashes endeavours secured his nomination.
"At the core of this award is the values set (by) Donald Bradman, which include dignity, integrity, courage and modesty in compatibility with pride, ambition and competitiveness," Sport Australia Hall of Fame Chairman John Bertrand AM said.
"All seven have demonstrated those values."
The winner will be announced at a gala dinner in Melbourne on October 9.
They will succeed golfer Adam Scott, who won in 2013 after his historic US Masters triumph.
AAP and AOC