Australia's Ricky Ponting was selected as captain of the squad for second year in a row and for third successive year was named in the team which was chosen by a specially appointed selection panel chaired by West Indian batting legend Clive Lloyd.
Presented in association with FICA, the ICC Awards recognise the best international players of the past 12 months.
For Dhoni it was the first time that he made it to the ODI team, while Tendulkar's name also figured in the last year's squad.
While six countries are represented in the 12-man line-up, Australia had the maximum representation in this year's World ODI team with five players which included Ponting, Andrew Symonds, Brett Lee, Mitchell Johnson and Nathan Bracken. Pakistan's Salman Butt was named the 12th man in the team.
''It is a great honour to be named captain of the World ODI Team which has been selected by such an elite panel,'' Ponting said.
The ODI Team of the Year in batting order- Hershelle Gibbs (SA), Sachin Tendulkar (Ind), Ricky Ponting (Aus, captain), Younus Khan (Pak), Andrew Symonds (Aus), Mahendra Singh Dhoni (Ind, wicketkeeper), Farveez Maharoof (SL), Daniel Vettori (NZ), Brett Lee (Aus), Mitchell Johnson (Aus), Nathan Bracken (Aus), 12th man: Salman Butt (Pak).