The versatile 20-year-old is joined on the list by try-scoring wing Christian Wade and lock Joe Launchbury, who have both shone in the Aviva Premiership this season despite being in a struggling Wasps side.
Harlequins flanker Luke Wallace, Worcester back row Matt Kvesic and London Irish centre Jonathan Joseph complete the shortlist.
To be eligible for the award, players have to be 21 or under on May 26, the day of the Aviva Premiership final, and have played in at least seven league matches this season. The winner, who will succeed Manu Tuilagi, is to be announced on May 8 at the Aviva Premiership awards.
The judging panel comprised members of the rugby media and World Cup winner Josh Lewsey, who was impressed by the quality of young players emerging into English rugby and into the national team.
Farrell, who was shortlisted for the award last year, made his Test debut in England's Six Nations campaign while Launchbury trained with the national squad and is in line for a place on the summer tour to South Africa.
"There is real quality coming through the Aviva Premiership Rugby clubs when we've had several years of England underachieving," Lewsey said. "Now you can see an England squad with players who are genuinely enjoying being part of the set-up, which obviously bodes well.
"England's new head coach Stuart Lancaster has instilled the correct culture for which they know that if they perform both on and importantly off the field, they will get their chance. All six of these young men epitomise that value set.
"The shortlist gives us a huge range of players from gun dogs like Matt Kvesic, nuggety players like Luke Wallace and the obvious mental fortitude of a guy like Owen Farrell.
"London Irish's Jonathan Joseph has also impressed me and of course - although it wasn't all my choice - I was delighted to see two players from London Wasps make the shortlist, after performing as they have, in adversity."