The Australian selectors sprung a major surprise when they included Western Australia spinner Michael Beer in their squad for the third Ashes Test in Perth.

The 26-year-old left-armer has played only five first-class games with 16 wickets at an average of 39.93 and takes the place of Xavier Doherty in the squad.

Beer, who picked up five for 207 during England's warm-up game for the first Ashes Test, could make his Test debut at his home ground at the WACA.

Selection chairman Andrew Hilditch said: "Michael Beer replaces Xavier Doherty in the squad. Michael is a left-arm orthodox spinner who has been very impressive at domestic level this year. He took wickets against England in the tour match earlier this summer and we expect he will bowl very well against the English on his home ground."

The other big changes to the 12-man squad that lost the second Test by an innings and 71 runs see Marcus North and Doug Bollinger drop out of the team.

Phillip Hughes is set to replace the injured Simon Katich at the top of the order while all-rounder Steven Smith is likely to take North's place in the starting XI as no other specialist batsmen have been named in the group.

"Phillip Hughes replaces the injured Simon Katich in the squad for the third Test match in Perth," Hilditch said.

"Phil is an exciting young batsman who has already proven his ability to succeed at international level and he deserves this opportunity to return to the Australian side.

"Steve Smith replaces Marcus North in the 12-man squad. This is obviously disappointing for Marcus who has played some outstanding Test innings for Australia but it was felt to be the right time to bring the exciting prospect Steve Smith into the Test team. Steve has already had success at international level and will also add to the bowling depth with his leg spin bowling and dynamic fielding."

One of or both Mitchell Johnson and Ben Hilfenhaus could return to the starting XI.

Hilditch added: "Doug Bollinger has been omitted from the squad. Both Mitchell Johnson and Ben Hilfenhaus did not play in Adelaide but will be strongly considered for selection in the Perth Test match where conditions will suit them. Ryan Harris and Peter Siddle were the pick of our quicks at Adelaide Oval and these four make up the pace attack for the Perth Test match.

"The squad is a very exciting one with a blend of talented young players and experienced international cricketers. We are confident it will play an aggressive brand of cricket as we try to change the momentum of the Test series in this critical Ashes Perth Test match."

Oh, and those who were hoping to see Shane Warne back in the international fold were left disappointed.

There has been plenty of speculation that Warne could come out of retirement, but he was clearly not willing or just not fit enough at the age of 41.

Australia squad: Ricky Ponting (c), Michael Clarke, Michael Beer, Brad Haddin, Ryan Harris, Phillip Hughes, Ben Hilfenhaus, Mike Hussey, Mitchell Johnson, Peter Siddle, Steven Smith, Shane Watson.