Australia have replaced the retired Ricky Ponting with the left-handed Phillip Hughes, ahead of this month's Test series against Sri Lanka.

The veteran Ponting retired from international cricket earlier this month, when his 17-year career ended in defeat to South Africa.

Hughes, who last played Test cricket in December 2011, has been in fine form for South Australia recently, scoring two centuries and three half-tons in 10 innings in List A and first-class competition.

Fast bowlers Ben Hilfenhaus and Peter Siddle have been recalled after the pair were rested for the final Test against the Proteas in Perth, while all-rounder John Hastings and the uncapped Josh Hazlewood were not considered for selection due to injury.

Batsman Rob Quiney was excluded after scoring a mere nine runs in three innings against the South Africans, and Nathan Lyon is the lone spinner in the 12-man squad for the first of three Tests, which gets underway on 14 December.

"Phillip is an improved player and his recent and overall career statistics present a compelling case," said national selection panel chairman John Inverarity.

"We hold the view that he, having just turned 24 years old, is a very significant part of the future. He has received this call-up, his third, as it was considered to be the right time and circumstances for him to re-establish himself.

"The dressing room will be different without the presence of Ricky. His absence creates both the opportunity and the necessity for others to grow and fill the gap."

Predominantly an opener, Hughes is expected to bat at three against the Sri Lankans, with fellow left-handers Ed Cowan and David Warner at the top of the order and all-rounder Shane Watson fourth.

"Michael Clarke will give careful consideration to his batting order during the next few days. He has a number of options open to him and Hughes at three is one of these," added Inverarity.

Squad for first Test: Michael Clarke (captain), Shane Watson (vice-captain), Ed Cowan, Ben Hilfenhaus, Phillip Hughes, Mike Hussey, Mitchell Johnson, Nathan Lyon, Peter Siddle, Mitchell Starc, Matthew Wade (wicketkeeper), David Warner.