The hosts have made two changes to their lineup as Pat Cummins and Scott Boland have replaced Michael Neser and Jhye Richardson.
Joe Root's England are 0-2 down in the series with three matches to play.
"He (Jhye Richardson) was pretty sore. We were umming and ahhing - he had a bowl yesterday but we thought seven days off (before the fourth Test in Sydney) will give him enough rest," cricket.com.au quoted Cummins as saying.
"He's got a small leg injury which is nothing major but we thought rather than risking a long-term injury, we'd give him a week off," he added.
Talking about Boland, Cummins said "We earmarked him as a chance for here and the SCG in particular, we think his record is really well suited. His record speaks for itself here in domestic cricket. Home ground, having someone fresh like him who can perform straightaway were the big factors."
"He's really excited obviously - it's a dream for him to wear the Baggy Green, packed MCG on Boxing Day, it doesn't get any better," he added.
Australia playing XI David Warner, Marcus Harris, Marnus Labuschagne, Steve Smith, Travis Head, Cameron Green, Alex Carey (wk), Pat Cummins (c), Mitchell Starc, Nathan Lyon, Scott Boland.
Ashes, 3rd Test: Scott Boland named in Australia playing XI, skipper Cummins also returns
ANI
Melbourne, December 25
Australia skipper Pat Cummins on Saturday confirmed the playing XI for the upcoming Boxing Day Test, beginning Sunday at the Melbourne Cricket Ground.
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