Left-arm spinner Ashton Agar has been recalled to Australia's squad for the fifth Ashes Test in Sydney as the hosts ponder a twin-spin attack against England for the dead rubber.


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The 24-year-old, who played his last Test against Bangladesh in Chittagong in September, has been included alongside regular spinner Nathan Lyon for the Jan. 4 match at the Sydney Cricket Ground.


Left-arm seamer Mitchell Starc, who missed the ongoing Melbourne Test due to a heel injury, and middle-order batsman Peter Handscomb, who was dropped from the side after the second Adelaide Test, have been retained in the 14-man squad.


Agar broke a finger during Australia's limited-overs tour of India in September but returned to domestic action earlier this month.


If Starc proves his fitness, Agar could be included at the expense of seam bowling all-rounder Mitchell Marsh.


Agar's inclusion will fan speculation that 33-year-old left-arm spinner Steve O'Keefe's international career is over despite his appearance in five Tests on the subcontinent this year and his match-winning 12-wicket haul against India in Pune.


O'Keefe was belatedly called up for the Bangladesh tour after paceman Josh Hazlewood was ruled out of the Chittagong Test with a side strain, but selectors have made no secret of their desire to look to groom a young spinner for the long term.