England also selected uncapped trio of Yorkshire batsman Gary Ballance, Durham all-rounder Ben Stokes and former Ireland seamer Boyd Rankin for a tour where they they will bid to win a fourth straight Ashes series against arch-rivals Australia.
Panesar has long been regarded as England's second-best spinner behind off-break bowler Graeme Swann.
However, the 31-year-old Panesar was fined by police for urinating in public after he was ejected from a Brighton nightclub on August 5 and then effectively sacked by south coast county Sussex.
England are due to arrive in Perth on October 25, with the first Test due to start at Brisbane's Gabba ground on November 21.
Squad
Alastair Cook (Essex, capt), Joe Root (Yorkshire), Jonathan Trott (Warwickshire), Kevin Pietersen (Surrey), Ian Bell (Warwickshire), Jonny Bairstow (Yorkshire, wkt), Matt Prior (Sussex, wkt), Stuart Broad (Nottinghamshire), Graeme Swann (Nottinghamshire), James Anderson (Lancashire), Steven Finn (Middlesex), Boyd Rankin (Warwickshire), Ben Stokes (Durham), Monty Panesar (Essex), Michael Carberry (Hampshire), Gary Ballance (Yorkshire), Chris Tremlett (Surrey).