Four finalists will be invited to deliver their sermons to an "X-Factor style" panel, which includes last year's finalist gender justice specialist at the organisation, Spark, Natalie Collins.
The other judges entrants will need to impress at a public event on 22nd June include Revd Dr Calvin Samuel and Anne Calver.
Dr Calvin Samuel, Principal of LST, said: "Many might conclude that the power of the spoken word is on the wane. Social media give everyone a potential voice, and at a time when media is multi-channel, primarily visual, and very brief, it might be tempting to conclude that sermons have had their day. Not so.
"At LST, we continue to believe in the power of the spoken word. Far more importantly, we continue to believe in the power of the Word of God, which has the power to disrupt, to challenge and to transform."
The competition is trying to encourage a new generation of preachers to exercise their gifting.
Sermons must not be more than 2,000 words long.
Dr Calvin went on to say: "We have all heard poor sermons. Let's not pretend that they do not exist. However, effective sermons captivate the heart, illumine the mind and function as conduits of Godly wisdom.
"It is for reasons like these that LST is proud to support innovative initiatives like the Sermon of Year to highlight the enduring importance of preaching."
The deadline for submissions is 24th March.
The successful entrant will secure a year of free study at LST, worth £6,000.