Other candidates include Antonio Conte, who led Chelsea to the English title, Manchester United’s Europa League-winning coach Jose Mourinho and Massimiliano Allegri of Juventus.
Zidane has enjoyed a glorious year in charge of Madrid as they successfully defended the European Cup — the first team to do so in the Champions League era.
Real also won La Liga, the first time they had been champions of Spain and Europe in the same year since 1958.
He has won seven trophies since succeeding Rafael Benitez as coach of Madrid in January last year, including the UEFA Super Cup and Spanish Super Cup this month.
The prize — one of a new set of awards organised by FIFA following their split with Ballon d’Or organisers France Football magazine — will be handed over in London on October 23.
The shortlist for FIFA’s coach of the year prize
Massimiliano Allegri (Juventus/ITA), Carlo Ancelotti (Bayern Munich/GER), Antonio Conte (Chelsea/ENG), Luis Enrique (Barcelone/ESP), Pep Guardiola (Manchester City/ENG), Leonardo Jardim (Monaco/FRA), Joachim Loew (Germany), Jose Mourinho (Manchester United/ENG), Mauricio Pochettino (Tottenham Hotspur/ENG), Diego Simeone (Atletico Madrid/ESP), Tite (Brazil), Zinedine Zidane (Real Madrid/ESP)
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