The Manchester City midfielder has just returned to favour with his club, making his first Premier League appearance of the season on Saturday and scoring twice in a 2-1 win at Crystal Palace.
His long period of inactivity has seen Toure, who was angry at not winning the last African award, miss out on selection from the voting panel.
Premier League stars Riyad Mahrez, Sadio Mane and Islam Slimani are among the five in contention for the prize, along with defending winner Pierre-Emerick Aubameyang and former Chelsea winger Mohamed Salah.
The award winner will be announced on January 5, the African football confederation (CAF) said.
Toure was sidelined during a dispute between his agent, Dimitri Seluk, and City manager Pep Guardiola, who demanded an apology for a series of scathing comments in the media made by the Ivorian's representative
An apology from Toure earlier this month saw the 33-year-old phased back into the first-team matchday squad
Toure railed against the verdict in January 2016 when Aubameyang ended his four-year reign as Africa's top player, saying it brought "shame on Africa" and was "indecent" that his own achievement as the African Nations Cup-winning captain was not sufficiently recognised
Toure has since retired from international football
CAF said its latest shortlist was determined by votes from media, its technical and development committee and 10 members of a 20-strong expert panel
It said the eventual winner would be determined by votes from head coaches and technical directors from CAF's 54 affiliated national associations and associate members, plus the other 10 members of its expert panel
Gabon striker Aubameyang is enjoying a stellar season with Borussia Dortmund, Egyptian Salah has impressed in Serie A with Roma, while Algerian Mahrez was a Premier League winner with Leicester in May
Mahrez's compatriot Slimani joined him at the King Power Stadium in the summer, when Senegalese forward Mane moved from Southampton to Liverpool
African Player of the Year award shortlist: Pierre-Emerick Aubameyang (Gabon/Borussia Dortmund), Riyad Mahrez (Algeria/Leicester), Sadio Mane (Senegal/Liverpool), Mohamed Salah (Egypt/Roma), Islam Slimani (Algeria/Leicester)
Source : PA
Source: PA