Nominated for his 2018 Bathurst 1000 win, Lowndes joins the likes of tennis star Ashleigh Barty, Australian cricket captain Tim Paine and Rugby League ace Cooper Cronk on the list of finalists.
The Don, named after cricketing legend Sir Donald Bradman, is awarded annually to an athlete who 'through their performance and example has most inspired the nation'.
Previous winners include Ian Thorpe, Cathy Freeman, Shane Warne and the Socceroos squad from the 2006 World Cup.
No racing driver has won The Don.
This year's winner will be announced at Sport Australia's 35th Induction and Awards Gala Dinner next Thursday.
“It is an incredible honour, [Bradman] was one of the greatest athletes our country has seen," said Lowndes.
“Growing up as a kid I was an avid cricket fan. I even still have my junior club cricket bat.
"Sir Donald Bradman is an icon of Australian sport who transcended all codes. His ability, sportsmanship and conduct on and off the field is something I have always looked up to.
"To be recognised as a finalist for such a prestigious award amongst Australian sporting greats, it makes me both proud to represent my sport of Supercars, but also my achievements during my career.
"To me, winning the Bathurst 1000 is the ultimate in our sport and one of Australia’s iconic sporting events. So to be a seven-time winner is something I will always be extremely proud of."