Peats' selection likely spells the end of the Origin career of long-time vice- captain Robbie Farah, who was in a three-way battle with Peats and Wallace for the No.9 jumper.
In contrast, Morris, Hayne and Pearce will re-enter the Origin arena after all three missed last year's series defeat for different reasons.
Morris made way following the emergence of Panthers star Josh Mansour, however has been given a reprieve due to the state's sudden wing crisis.
Mansour suffered a major knee injury playing in the Four Nations last year, while Manly's Tom Trbojevic was widely tipped to fill the role before also picking up a knee issue a fortnight ago.
Morris will form a new-look left edge with Hayne, who marks his return to the NSW line-up for the first time since their drought-breaking series win in 2014.
The other major inclusion was that of the maligned Pearce, who will partner James Maloney in the halves despite failing to lift the shield in six attempts.
Centre Josh Dugan was also named despite missing the past two NRL matches for St George Illawarra with a cheekbone fracture.
If Dugan is ruled out, bench utility Jack Bird is likely to step into the starting line-up and 18th man Matt Moylan be moved into the 17.
Melbourne prop Jordan McLean and Dragons forward Jack de Belin are 19th and 20th men.
The NSWRL also announced six inaugural inductees to their hall of fame, including Bradley Clyde, Ron Coote, Brad Fittler, Bob McCarthy, Norm Provan and Daley.
The six join automatic inductees from the pre-War era, as well as the seven Immortals who represented NSW.
NSW team for Origin I: James Tedesco, Blake Ferguson, Josh Dugan, Jarryd Hayne, Brett Morris, James Maloney, Mitchell Pearce, Aaron Woods, Nathan Peats, Andrew Fifita, Josh Jackson, Boyd Cordner (c), Tyson Frizell. Bench: David Klemmer, Wade Graham, Jake Trbojevic, Jack Bird.
-AAP
