The 30-year-old has not played Test cricket for a year due to his battle against lung cancer, but is now in line for the No 6 spot.
Yuvraj made a half-century and took five wickets against England for India A in Mumbai last week.
Off-spinner Harbhajan Singh has also been included in the squad along with Chennai batsman Murali Vijay and Delhi paceman Ishant Sharma.
The selectors have opted for three spinners with Ravichandran Ashwin and Pragyan Ojha also competing for a starting berth.
Batsman Suresh Raina, who has struggled for form recently, has been dropped, while Rahul Dravid and VVS Laxman have both now retired.
The first Test of the four-match series gets underway at Ahmedabad on 15 November with the second Test starting in Mumbai on 23 November.
India: Mahendra Singh Dhoni (capt), Virender Sehwag,Gautam Gambhir, Cheteshwar Pujara, Sachin Tendulkar, Virat Kohli, Yuvraj Singh, Ajinkya Rahane, Ravichandran Ashwin, Pragyan Ojha, Harbhajan Singh, Zaheer Khan, Umesh Yadav, Ishant Sharma, Murali Vijay.