The 25-year-old has been trusted to take the reins from Terry, who retired from international football last month amid a racism storm involving Queens Park Rangers centre-back Anton Ferdinand.
While many were calling for Manchester United defender Rio Ferdinand to return to the side, reports claimed this morning that Hodgson had no intentions of bringing the 33-year-old back into the national set-up.
Shawcross has been deemed an appropriate replacement by Hodgson, who has also called up Aaron Lennon, who has not played for England for two years.
Andy Carroll, who is currently on loan to West Ham United from Liverpool, has also been included in the squad, despite only just recovering from a hamstring strain.
Goalkeepers: Hart (Manchester City), Ruddy (Norwich), Forster (Celtic)
Defenders: Baines (Everton), Cahill (Chelsea), Cole (Chelsea), Gibbs (Arsenal), Jagielka (Everton), G Johnson (Liverpool), Lescott (Manchester City), Shawcross (Stoke), Walker (Tottenham)
Midfielders: Carrick (Manchester United), Cleverley (Manchester United), Oxlade-Chamberlain (Arsenal), Gerrard (Liverpool), A Johnson (Sunderland), Lennon (Tottenham), Lampard (Chelsea), Milner (Manchester City), Walcott (Arsenal)
Forwards: Carroll (West Ham, on loan from Liverpool), Defoe (Tottenham), Rooney (Manchester United), Welbeck (Manchester United)