The inclusion of Chelsea midfielder Loftus-Cheek is the only change from the Three Lions' 2-1 victory over Tunisia in their campaign opener.
The 22-year-old has been drafted in to replace Tottenham Hotspur's Dele Alli, who has been struggling with a thigh strain.
Panama, meanwhile, have named an unchanged lineup from their 3-0 defeat against group leaders Belgium.
England: Pickford, Trippier, Walker, Stones, Maguire, Young, Loftus-Cheek, Henderson, Lingard, Sterling, Kane
Subs: Butland, Rose, Dier, Vardy, Welbeck, Cahill, Jones, Delph, Rashford, Alli, Alexander-Arnold, Pope
Panama: Penedo, Murillo, Escobar, Torres, Davis, Gomez, Godoy, Cooper, Rodriguez, Barcenas, Perez
Subs: Calderon, Cummings, Gabriel Torres, Diaz, Machado, Pimentel, Arroyo, Ovalle, Tejada, Avila, Baloy, Alex Rodriguez
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