Included on stand-by are Manchester United duo Michael Carrick and Tom Cleverley, along with John Ruddy, Jon Flanagan, Andy Carroll, Jermain Defoe and John Stones.
The most high-profile omissions from the squad are Ashley Cole, Kyle Walker, Adam Johnson and Ashley Young.
ENGLAND SQUAD..
Goalkeepers
J Hart (Manchester City), B Foster (West Brom), F Forster (Celtic)
Defenders
G Johnson (Liverpool), P Jagielka (Everton), G Cahill (Chelsea), C Smalling (Manchester United), P Jones (Manchester United), L Baines (Everton), L Shaw (Southampton)
Midfielders
S Gerrard (Liverpool, capt), F Lampard (Chelsea), J Henderson (Liverpool), J Milner (Manchester City), J Wilshere (Arsenal), R Barkley (Everton), A Lallana (Southampton), R Sterling (Liverpool), A Oxlade-Chamberlain (Arsenal)
Strikers
W Rooney (Manchester United), D Sturridge (Liverpool), D Welbeck (Manchester United), R Lambert (Southampton).
Standby-players
Michael Carrick (Manchester United), Andy Carroll (West Ham United), Tom Cleverley (Manchester United), Jermain Defoe (Toronto FC), Jon Flanagan (Liverpool), John Ruddy (Norwich City), John Stones (Everton)
England World Cup squad - in full
Show all 23
Hodgson has announced a 23-man squad that will go to the tournament, plus a further seven players on stand-by.
As was expected following Ashley Cole's tweets last night, Shaw has been picked as the understudy to Leighton Baines.
Arsenal duo Oxlade-Chamberlain and Wilshere are in the 23 despite their recent injury concerns, but a pelvic problem for Walker means he misses out entirely.
Everton youngster John Stones is included on the stand-by list despite never being called up before. Hodgson has indicated that if Phil Jones fails to prove his fitness, Stones will be the player to get the nod.
John Stones could still be going to the World Cup
(Getty Images)
Adam Lallana, who has three caps, has been rewarded for a fine year with Southampton by being included.
James Milner also is favoured ahead of the likes of Adam Johnson and Ashley Young - neither of whom made the squad or standby list.
There were no surprises in the centre of defence. Cahill, Jagielka, Jones and Smalling were Hodgson's favoured four.
Fraser Forster was chosen as third goalkeeper behind Joe Hart and Ben Foster, with John Ruddy the player to miss out.
The squad are due to head off to Portugal for training before returning to England for a friendly with Peru at Wembley on May 30.
They will then cross the pond to play two further games, against Ecuador and Honduras, in Miami.
Fifa's deadline for the final squads is June 2 and England can make any necessary changes up until this date.
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