Australia's most capped player with 109 international matches and a fixture in front of the Socceroos' goal for nearly 20 years, Schwarzer's omission is a blow to the 40-year-old's hopes of finishing his international career on a high at next year's World Cup finals.
Osieck has opted for uncapped Mitchell Langerak, who plays for Bundesliga team Borussia Dortmund, and Belgium-based Mat Ryan as his two keepers in a 24-man squad named on Tuesday.
Osieck steered Australia through Asia's regional qualifiers this year to take the team to a third successive World Cup but calls for his dismissal have rained down on the German in the wake of the Brazil embarrassment, and he is widely believed to be coaching for his career against France and Canada next month.
Attacking midfielder Tim Cahill and stalwart defender Luke Wilkshire have been recalled after missing the Brazil match due to injury, while uncapped Jackson Irvine, a 20-year-old midfielder playing in Scotland's top flight, has joined the squad for the first time.
Japan-based defender Lucas Neill is set to captain the Socceroos' for a record-equalling 60th time in the October 15 match against Canada in London, which follows the October 11 clash against France in Paris.