The No.66 scored a dramatic late winner against Fulham at Anfield, alongside recording two assists and three clean sheets for Liverpool across six matches.
The Reds secured four wins and two draws in December to remain unbeaten and end the year at the top of the Premier League standings.
Alexander-Arnold has been named on the shortlist for the prize with Cole Palmer (Chelsea), Dominic Solanke (AFC Bournemouth), Richarlison (Tottenham Hotspur), Mohammed Kudus (West Ham United) and Leon Bailey (Aston Villa).
