New Australia coach Ange Postecoglou on Wednesday axed veteran Luke Wilkshire but kept faith with Lucas Neill in his first squad announcement, which was overshadowed by Mark Schwarzer's international retirement.

Postecoglou was appointed coach last month after Holger Osieck was sacked following successive 6-0 thrashings in Brazil and France and he had made clear the ageing core of the Socceroos squad was on notice in the lead up to next year's World Cup.

While under-fire captain Neill and fellow elder statesmen Tim Cahill and Mark Bresciano escaped the chop for the friendly against Costa Rica in Sydney on November 19, Wilkshire, capped 79 times, was a high-profile casualty.

Fellow veteran defender Sasa Ognenovski and striker Brett Holman were also missing.

Postecoglou said Neill, who has played every game in Australia's 2014 World Cup campaign "gets the opportunity to be part of what I want to do".

"Nothing much changes, he's in the squad on merit ... there was no way I was going to totally throw away everything that's been done so far," he said.

But the coach warned Neill that he might not be captain.

"It's a new direction and a new start ... we'll pick a side for Costa Rica and pick a captain as well."

Postecoglou selected a squad with a notable A-League flavour by picking Ivan Franjic (Brisbane Roar), Matt McKay (Roar), Mark Milligan (Melbourne Victory) and Michael Zullo (Adelaide United).

"I'm excited by the squad we have named," he said.

"The first task is to have a good look at the bulk of the players who played a significant part in qualifying Australia for the 2014 World Cup and also giving opportunities to players I think have the ability to improve the team.

"I want to give every Australian player the best opportunity to stake a claim for Brazil and beyond."

Schwarzer, Australia's most-capped player with 109 appearances, had been initially included in the squad, but the 41-year-old Chelsea goalkeeper informed Football Federation Australia on Wednesday morning that he was quitting with immediate effect.

It draws a curtain on an international career spanning 20 years and opens the door to a number of talented keepers vying to make the squad for the World Cup in Brazil, including Borussia's Dortmund's Mitch Langerak and Brugge keeper Mathew Ryan.

"Mark was included in the squad but decided that he wanted to announce his retirement and not participate," Postecoglou said.

"I have utmost respect for his decision, which was his decision. It would be remiss of me not to pay tribute to one of the greats of the Socceroos -- a great servant, always available to play for his national team."