Wicketkeeper Paine replaces Steve Smith - who was banned by Cricket Australia for a year following the ball-tampering scandal - for the five-match series.
Australia will play a five-match series against England next month.
Aaron Finch, vice-captain and opening batsmanAge 31, ODIs 88 Now a relative veteran, with 88 ODI caps, Finch made his name in England when he made scored a world record 156 in a T20 in Southampton.
D'Arcy Short earned his maiden One-Day International call-up as Australia's selectors on Tuesday (May 8) named a 15-man squad under Tim Paine to tour England next month.
Chairman of selectors Trevor Hohns said Cricket Australia had faith in Paine's ability to lead the 15-man squad in England, with Aaron Finch as his vice-captain.
Though Paine was already confirmed as Smith's successor in the longest format of the game, his appointment as ODI skipper is a temporary one with a long-term captain yet to be named.
"Obviously, these are the conditions we will face during the tournament, so now is a ideal chance to give these players an opportunity to press their case for selection", he said. "A decision on a permanent one-day captain will be made in due course", Hohns was quoted as saying by cricket.com.au.
Australian T20 squad: Aaron Finch (c), Alex Carey (vc), Ashton Agar, Travis Head, Nic Maddinson, Glenn Maxwell, Jhye Richardson, D'Arcy Short, Billy Stanlake, Marcus Stoinis, Mitchell Swepson, Andrew Tye, Jack Wildermuth.
"D'Arcy is relatively new to one-day cricket but impressed us with his form in T20 cricket last season".
The Twenty20 squad also features a pair of uncapped players, with Queensland all-rounder Jack Wildermuth and his spin bowling team mate Mitchell Swepson.Swepson, who was a surprise inclusion in Australia's Test squad for the tour of India previous year but never played, replaces fellow legspinner Adam Zampa.
While experienced batsman Shaun Marsh has also been recalled in the ODI squad to fill in the gaps left by Smith and former vice-captain David Warner, spinners Ashton Agar and Nathan Lyon have also been included for series against England.
"Mitchell is going to undertake a prolonged rehabilitation period for his tibial bone stress injury and we are aiming for a return to play for the Pakistan Test Series in the UAE". "Pat is still recovering from a lumbar bone stress injury, the good news is that it has not progressed to a fracture but he still requires a period of rehabilitation with an aim for him to return to play for the Pakistan Test series along with Starc".
Hazlewood will be backed up by Jhye Richardson, Kane Richardson, Billy Stanlake and Andrew Tye, while Marcus Stoinis can fill in a few overs with his medium pace.
England's rise to the top of the ODI rankings has been remarkable following their exit in the league stages of the 2015 ICC Cricket World Cup held in Australia-New Zealand.
Barring the loss in the Champions Trophy final against Pakistan in 2017, India have won nine consecutive bilateral ODI series, including their first-ever series win in South Africa where they thrashed the Proteas 5-1.