Add a background image to shape in XML Android

Use following layerlist:

<?xml version="1.0" encoding="utf-8"?>
<layer-list xmlns:android="http://schemas.android.com/apk/res/android" >
    <item>
        <shape android:shape="rectangle" android:padding="10dp">
            <corners
                 android:bottomRightRadius="5dp"
                 android:bottomLeftRadius="5dp"
                 android:topLeftRadius="5dp"
                 android:topRightRadius="5dp"/>
         </shape>
   </item>
   <item android:drawable="@drawable/image_name_here" />
</layer-list>

This is a circle shape with icon inside:

<?xml version="1.0" encoding="utf-8"?>
<layer-list xmlns:android="http://schemas.android.com/apk/res/android">
    <item android:drawable="@drawable/ok_icon"/>
    <item>
        <shape
                android:shape="oval">
            <solid android:color="@color/transparent"/>
            <stroke android:width="2dp" android:color="@color/button_grey"/>
        </shape>
    </item>
</layer-list>

I used the following for a drawable image with a circular background.

<?xml version="1.0" encoding="utf-8"?>
<layer-list xmlns:android="http://schemas.android.com/apk/res/android">
    <item>
        <shape android:shape="oval">
            <solid android:color="@color/colorAccent"/>
        </shape>
    </item>
    <item
        android:drawable="@drawable/ic_select"
        android:bottom="20dp"
        android:left="20dp"
        android:right="20dp"
        android:top="20dp"/>
</layer-list>

Here is what it looks like

Hope that helps someone out.