In another interesting pick, senior off-spinner Harbhajan Singh has also been recalled to the team after a gap of one year along with veteran seamer Lakshmipathy Balaji, who makes a comeback after three years.
Yuvraj's selection was on the cards after he was declared fit by the physio and trainer at the National Cricket Academy where he had been camping for the past one month.
"Yuvraj has been declared fit, so he makes a comeback. And all of us know, if he gets going, he can singlehandedly win matches," chairman of selectors Krishnamachari Srikkanth told reporters after the meeting.
The two T20 Internationals against New Zealand, slated for the first week of September, will be a test for Yuvraj who underwent chemotherapy in the US earlier this year.
Ever since his diagnosis, the left-hander has remained out of action since the second Test match against West Indies played from November 14-17 in Kolkata.
The selection committee took around three and half hours to decide on the two squads -- the bone of contention being the selection of Yuvraj and Harbhajan.
According to sources, Yuvraj's selection wasn't exactly unanimous as couple of selection committee members were apprehensive about picking him for the T20 World Cup starting September 18 as he has not played a single competitive match for the past nine months. MORE