"The [panel] has been impressed with George's leadership when he stepped in to guide the ODI team in Michael's absence last summer, and leadership of the T20 team over the past two seasons," he said.
"Given George's experience and credentials, he was viewed as the ideal person for the role."
There were no major surprises in the Champions Trophy squad, with West Australian paceman Nathan Coulter-Nile the only uncapped player included after injury ruled out Ben Cutting.
Fellow Warriors Mitch Marsh and Adam Voges, plus Ashes inclusion James Faulkner also won their spurs while Steve Smith, Aaron Finch and Moises Henriques were squeezed out.
Smith and Henriques are in the Australia A squad which will tour the UK at the same time as the Champions Trophy.
"Nathan Coulter-Nile is an emerging cricketer as a fast-medium bowler and explosive lower-order batsman," Inverarity said.
"He is also one of the finest fieldsmen in Australian cricket and the energy he brings to his game is impressive."
- AAP