Michael Clarke was formally ruled out of Australia's series to India, with Callum Ferguson replacing the skipper.
George Bailey will take over the reins from Clarke as Nic Maddinson was also included in the T20 team that will play a lone match with India, before the start of the seven-match one-day international series.
Clarke was initially named in the squad subject to passing a fitness test, but was expected to pull out with Australia not wanting to take a risk on his back injury, particularly with the return Ashes series looming large.
"Michael was very keen to captain the ODI team to India but unfortunately he hasn't progressed enough to be available for selection," Australia team selector John Inverarity said.
"His replacement is Callum Ferguson, whose form in 50-over cricket during the last Australian summer was impressive, scoring 271 runs at an average of 45 and a strike rate of 70 in the Ryobi Cup, along with an additional three matches for Australia A against the England Lions in February, scoring 149 runs in three innings at 49.66 with a strike rate of 91.
"George Bailey will captain the ODI team in Michael's absence. Brad Haddin will be George's vice-captain."
Australian team physio Alex Kountouris revealed Clarke's back had not responded to treatment as well as he would have liked.
"Michael Clarke has a longstanding low back injury that requires ongoing management," he said. "During the recent England ODI series his injury flared up again and has been slow to improve with his regular treatment regime.
"Michael will therefore not be available to play the upcoming India ODI series and will require a more extensive rehabilitation period before returning to competitive cricket."
Maddinson was picked after impressing for Australia A in their tours of the Great Britain and Ireland and South Africa.
"Nic showed some sparkling form on Australia A tours during the winter," Inverarity said. "He will be in strong contention to open the batting with Aaron Finch in the T20."
Australia squad: T20: George Bailey (capt); Nathan Coulter-Nile; Xavier Doherty; James Faulkner; Aaron Finch; Brad Haddin; Moises Henriques; Mitchell Johnson; Nic Maddinson; Glenn Maxwell; Clint McKay; Adam Voges; Shane Watson.
ODI: George Bailey (capt); Nathan Coulter-Nile; Xavier Doherty; James Faulkner; Callum Ferguson; Aaron Finch; Brad Haddin; Moises Henriques; Phil Hughes; Mitchell Johnson; Glenn Maxwell; Clint McKay; Adam Voges; Shane Watson.
