Teo, 29, played for Queensland in State of Origin and one league Test for Samoa but qualifies for England through his mother, who was born and raised there.
England's Australian coach Eddie Jones had previously spoken highly of Te'o, indicating he was well in the mix for a call-up.
"We are excited to being touring Australia in June," Jones said.
"To beat the Wallabies in Australia you have to play a physical, aggressive brand of rugby and that's what we intend to do.
"We will need to be a fit, cohesive, tactically flexible team and play with a high intensity. We have to be in their faces from the first minute of the first Test.
"But we are in no doubt of the challenge we face. England have only ever won three Tests in Australia and never won in Brisbane, so it is a great opportunity for us to create new history."
ENGLAND
Forwards: Dan Cole (Leicester Tigers), Luke Cowan-Dickie (Exeter Chiefs), Jack Clifford (Harlequins), Ellis Genge (Leicester Tigers), Jamie George (Saracens), Teimana Harrison (Northampton Saints), Dylan Hartley (Northampton Saints), James Haskell (Wasps), Paul Hill (Northampton Saints), Maro Itoje (Saracens), George Kruis (Saracens), Joe Launchbury (Wasps), Courtney Lawes (Northampton Saints), Matt Mullan (Wasps), Chris Robshaw (Harlequins), Kyle Sinckler (Harlequins), Billy Vunipola (Saracens), Mako Vunipola (Saracens)
Backs: Mike Brown (Harlequins), Danny Care (Harlequins), Elliot Daly (Wasps), Owen Farrell (Saracens), George Ford (Bath Rugby), Alex Goode (Saracens), Jonathan Joseph (Bath Rugby), Jack Nowell (Exeter Chiefs), Henry Slade (Exeter Chiefs), Ben Te'o (Worcester Warriors), Manu Tuilagi (Leicester Tigers), Anthony Watson (Bath Rugby), Marland Yarde (Harlequins), Ben Youngs (Leicester Tigers).