Fellow prop John Afoa was also named after proving his fitness following a cheekbone injury during the match against South Africa in Wellington two weeks ago.
Victor Vito also joins the squad while Tom Donnelly is an injury cover while Jarrad Hoeata has a scan on a shoulder later today.
84 test veteran Keven Mealamu, who led the All Blacks once to a 32-6 win over Scotland in 2008, will lead the side out in South Africa.
Colin Slade is expected to run the backline in Carter's absence.
All Blacks Coach Graham Henry said: "As with any All Blacks side, the coaches and players set high expectations and the squad which is heading to South Africa is no different."
"There is real excitement amongst the squad. We have players returning from injury who will be playing for the All Blacks for the first time this year, while others will be looking to take the opportunity to stake a further claim in the black jersey and ensure selection in the Rugby World Cup, so we will have a team which is hungry to play well."
The All Blacks squad leaves for South Africa tomorrow. Meanwhile Dagg and Zac Guildford will stay home an extra day to play for Hawke's Bay in their ITM Cup match against Bay of Plenty in Rotorua tomorrow, and travel to South Africa on Sunday morning.
The squad is:
Forwards: John Afoa, Wyatt Crockett, Ben Franks, Jarrad Hoeata, Andrew Hore, Jerome Kaino, Keven Mealamu, Liam Messam, Adam Thomson, Samuel Whitelock, Ali Williams, Tony Woodcock and Victor Vito.
Backs: Jimmy Cowan, Israel Dagg, Andy Ellis, Hosea Gear, Zac Guildford, Richard Kahui, Cory Jane, Ma'a Nonu, Colin Slade, Isaia Toeava, Piri Weepu and Sonny Bill Williams.
- HERALD ONLINE/NZPA