The Brazilian-born missed Chelsea's last two games of the season due to a persistent hamstring injury and has struggled at international level with just one goal in 10 games since declaring to play for Spain in 2013.
World Cup winners Fernando Torres, Juan Mata and Javi Martinez were also high-profile names left out by Del Bosque.
Ronal-do or die: Cristiano’s final European hurrah
Arsenal's Santi Cazorla was also excluded having just returned from a long-term knee injury.
The uncapped Saul Niguez and Lucas Vazquez of Atletico Madrid and Real Madrid respectively have made the 25.
Meanwhile, Villarreal captain Bruno Soriano was surprisingly included amongst 10 midfielders.
Rashford, Townsend in 26-man England squad
Squad:
Goalkeepers: Iker Casillas (Porto/POR), David De Gea (Manchester United/ENG), Sergio Rico (Sevilla)
Defenders: Jordi Alba, Gerard Pique, Marc Bartra (all Barcelona), Sergio Ramos, Dani Carvajal (Real Madrid), Cesar Azpilicueta (Chelsea/ENG), Juanfran (Atletico Madrid)
Midfielders: Sergio Busquets, Andres Iniesta (both Barcelona), David Silva (Manchester City/ENG), Mikel San Jose (Athletic Bilbao), Koke, Saul Niguez (both Atletico Madrid), Cesc Fabregas (Chelsea/ENG), Thiago Alcantara (Bayern Munich/GER), Isco (Real Madrid), Bruno Soriano (Villarreal)
Forwards: Pedro Rodriguez (Chelsea/ENG), Alvaro Morata (Juventus/ITA), Aritz Aduriz (Athletic Bilbao), Nolito (Celta Vigo), Lucas Vazquez (Real Madrid)
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