They become the second act from the 15-strong longlist to claim a place in this year's five, after it was announced yesterday that New Yorkers The Drums had come fifth.
Last month the Manchester-based pair – Adam Anderson and Theo Hutchcraft - told Digital Spy that they had "pop in their bones".
"From the day we met, we always said we could never sell out because we both love pop," said Anderson. "That's a bit of a cliché as it's very cool now, whereas a few years ago the people hailing pop were the ones denouncing it."
Explaining the meaning behind their debut single 'Wonderful Life' - due for release on January 18 - Hutchcraft said: "It's basically based on two extremes - the first being a man who wants to kill himself and the second being love at first sight. He's standing on the bridge about to jump and he's stopped by a woman.
"They see each other and fall in love. She basically says, 'Come with me, it's all going to be fine'. The song only offers a snippet of someone's life, so we don't know what happens at the end of it."
The top three acts on the Sound of 2010 list, which was compiled by 165 UK-based tastemakers, will be named one a day in reverse order until Friday.
> Click here to read our full interview with Hurts