The elegant left-hander will captain the Indian board president's XI in the four-day match beginning in Hyderabad on October 2, said the Board of Control for Cricket in India (BCCI).
Yuvraj Singh has played only 23 Tests since his debut in 2003, scoring 1,050 runs at an average of 32.81 with three centuries.
He was dropped for the recent Test series in Sri Lanka and was not considered for the five-day Irani Cup domestic tie, regarded as a trial match for the Australian series, which begins in Vadodara on Wednesday.
The board presidents squad of 15 includes 12 current or former India internationals like Wasim Jaffer, Aakash Chopra, Rohit Sharma, Virat Kohli, Parthiv Patel, Irfan Pathan and Shanthakumaran Sreesanth.
The match will be Australia's lone first-class match before the four-Test series opens in Bangalore on October 9. The remaining back-to-back Tests will be played in Mohali, New Delhi and Nagpur.
Indian board presidents squad: Yuvraj Singh (capt), Subramaniam Badrinath, Wasim Jaffer, Aakash Chopra, Rohit Sharma, Virat Kohli, Parthiv Patel (wicket-keeper), Irfan Pathan, Shanthakumaran Sreesanth, Piyush Chawla, Pragyan Ojha, Pankaj Singh, Manpreet Gony, Yogesh Takawale, Rakesh Dhurv.