Conversely, Rubin -- who was also nominated for producer of the year -- was disappointed that the Grammys snubbed the recent No. 1 album by late country icon Johnny Cash, whose career he resurrected in the early 1990s. All four previous releases in Cash's "American Recordings" series yielded Grammys.
"I'm a little surprised, but it's all cool. Whatever's meant to be," he said.
Another Grammys favorite, Bob Dylan, was shut out of the major categories, with his recent No. 1 album "Modern Times" yielding just two nominations.
Other acts with four nominations each included R&B singer Beyonce, producer Bryan Michael Cox, gospel artist Israel Houghton, and rapper T.I.
Contenders for best new artist were Blunt and fellow British singers Imogen Heap and Corinne Bailey Rae, "American Idol" winner Carrie Underwood and R&B singer Chris Brown.
Blunt, 34, whose ballad "You're Beautiful" was ubiquitous this year, told Reuters, "The Grammys is a pretty phenomenal institution ... so to have my name associated with it is a great honor."
It is rare for three British acts to compete for best new artist, which possibly suggests that American music fans are becoming less "provincial," said Neil Portnow, president of the National Academy of Recording Arts and Sciences, which organizes the event. Nominees and winners are determined by the academy's members, who are music industry professionals.
The artists nominated for record of the year -- which goes to the performer and producers -- were Blige ("Be Without You"), Blunt ("You're Beautiful"), the Dixie Chicks ("Not Ready to Make Nice"), Gnarls Barkley ("Crazy"), and Corinne Bailey Rae ("Put Your Records On").
The Blige, Blunt, Dixie Chicks and Rae songs will compete for song of the year -- a songwriters award -- alongside Underwood's "Jesus, Take the Wheel."
The 49th annual Grammy Awards will take place at the Staples Center in Los Angeles on February 11.