Australia have dropped left-arm fast bowler Mitchell Johnson for the first Test against Sri Lanka, which gets underway in Hobart.

Johnson was named in the 12-man squad, but has lost his place in the XI in the wake of recalls for right-arm seamers Peter Siddle and Ben Hilfenhaus.

Siddle and Hilfenhaus were rested for the third and final Test against South Africa in a bid to manage their workload, after the pair combined for an exhaustive 117.2 overs during the drawn match in Adelaide.

Friday's series opener at the Bellerive Oval also marks the return of batsman Phil Hughes, after the veteran Ricky Ponting retired earlier this month.

All-rounder Shane Watson, meanwhile, will bat in four in the order - and spinner Nathan Lyon has retained his position.

"Obviously it's a tough selection trying to cut 12 down to 11, especially with the way that Johnson performed in Perth. Mitchell would feel unlucky, there's no doubt about that," said captain Michael Clarke.

"But I've been saying that it's a nice problem to have to have 12 blokes who want to play and have performed well. Mitch will be fine and continue to work his backside off and wait for another opportunity and when that comes grab it with both hands."

The 22-year-old Starc's performance was a late highlight at the WACA, where the hosts slumped to a 309-run defeat - and one-nil series loss.

The burgeoning all-rounder clinched a six-wicket haul in the Proteas' second innings - and amassed the highest score of his Test career en route to 68 not out through the closing throes of the fixture.

"Mitchell Starc has been in the queue for a while now and I thought he came in and did a really good job in Perth as well. We've gone for this attack for this Test match in these conditions against the opposition we are playing," added Clarke.

"Starc has performed really well in the shorter form of the game for Australia too. He got one Test in Perth, got a six-for and got 60-odd with the bat as well, so it's not a bad start."

Team: Michael Clarke (captain), Ed Cowan, David Warner, Phil Hughes, Shane Watson, Mike Hussey, Matthew Wade, Nathan Lyon, Mitchell Starc, Peter Siddle, Ben Hilfenhaus.