Starc, who has asked for privacy around his decision, had looked in some discomfort in the latter stages of the second Test in Galle.

"We understand and respect Mitch's decision," chair of selectors George Bailey said. "Mitch is deeply respected for his commitment to international cricket and the priority he places on performing for Australia.

"His well documented ability to play through pain and adversity, as well as forgoing opportunities in other parts of his career to put his country first should be applauded. His loss is of course a blow for the Champions Trophy campaign but does provide an opportunity to someone else to make a mark on the tournament."

Smith will take on the captaincy in place of Cummins and Marsh having led Australia to a 2-0 victory the Test series against Sri Lanka.

Fraser-McGurk, who averages 17.40 from five ODIs but finished the BBL with 95 off 46 balls for Melbourne Renegades, provides another top-order option in the absence of Marsh while left-arm quick Johnson is as close as possible to a like-for-like of Starc although is wicketless from two ODIs. Legspinner Sangha, who was already in Sri Lanka with the Test squad as a development player, joins Adam Zampa as a second frontline spinner.

"The squad has changed significantly over the past month on the back of some untimely injuries and the retirement of Marcus Stoinis," Bailey said. "The upside of that is that we have been able to call on players who have had international exposure and success over the past 12 months.

"A strong core of some our most experienced players will provide a strong foundation in our attempt to win this edition of the Champions Trophy. We have a range of options to shape the playing XI within the tournament depending on the opposition and conditions we face."

Australia will prepare for the Champions Trophy with two ODIs against Sri Lanka in Colombo on Wednesday and Friday. Their first match of the tournament is against England on February 22 followed by South Africa (February 25) and Afghanistan (February 28).

Australia Champions Trophy squad