Steve Smith replaces Aaron Finch as Australia captain ahead of World Twenty20

Aaron Finch has been replaced as Australia's captain in the shortest form of the game by Test skipper Steve Smith just a month before the start of the World Twenty20.

Opener Finch, who has been struggling with a hamstring injury, was named captain in September 2014 but only skippered the side on six occasions as Australia concentrated on other forms of the game.

He remains in the 15-man squad for the tournament in India, while selectors sprang a surprise by replacing wicketkeeper Matthew Wade with Test gloveman Peter Nevill, who has never played any limited overs cricket for his country.

Left-arm spinner Ashton Agar, who has never played any international T20 cricket, was also named in the squad.

Australia have never won the World Twenty20 title in five previous attempts, their best finish coming in West Indies in 2010 when they lost to England in the final.

"Aaron Finch has done a very good job captaining Australia in T20 cricket. He will have benefited enormously from the leadership opportunity and will remain a highly-respected leader within the Australian squad," said national selector Rod Marsh.

"However since he became T20 captain, there has been a broader leadership transition in Test and one-day international cricket with Michael Clarke retiring and Steve Smith assuming the captaincy in Test and one-day cricket.

"We think now is the right time for Steve to lead Australia in all three forms of the game as it offers us important continuity, not only ahead of the World T20, but beyond that tournament as well."

Australia squad:

Steve Smith (captain), David Warner, Ashton Agar, Nathan Coulter-Nile, James Faulkner, Aaron Finch, John Hastings, Josh Hazlewood, Usman Khawaja, Mitchell Marsh, Glenn Maxwell, Peter Nevill, Andrew Tye, Shane Watson, Adam Zampa