Coach Alejandro Sabella recalled Demichelis to his provisional squad last month after his title-winning season with English Premier League side Manchester City following more than two years out of the Argentina reckoning.
The defender who made way for Demichelis is another veteran of the 2010 finals in South Africa, Nicolas Otamendi, who was on loan at Brazil's Atletico Mineiro and had also only recently been recalled by Sabella.
Benfica winger Enzo Perez also found a place in the squad for the Brazil finals starting on June 12 but Banega, who joined Newell's Old Boys from Valencia this season, missed the cut after illness and loss of form.
Goalkeepers: Sergio Romero (Sampdoria), Mariano Andujar (Catania), Agustin Orion (Boca Juniors)
Defenders: Pablo Zabaleta (Manchester City), Federico Fernandez (Napoli), Ezequiel Garay (Benfica), Marcos Rojo (Sporting Lisbon), Hugo Campagnaro (Inter Milan), Martin Demichelis (Manchester City), Jose Basanta (Monterrey)
Midfielders: Javier Mascherano (Barcelona), Fernando Gago (Boca Juniors), Lucas Biglia (Lazio), Ricardo Alvarez (Inter Milan), Augusto Fernandez (Celta Vigo), Angel Di Maria (Real Madrid), Maxi Rodriguez (Newell's Old Boys), Enzo Perez (Benfica)
Forwards: Lionel Messi (Barcelona), Gonzalo Higuain (Napoli), Sergio Aguero (Manchester City), Rodrigo Palacio (Inter Milan), Ezequiel Lavezzi (Paris St Germain)
- Sports & Recreation
- Manchester City
- Lionel Messi
- English Premier League
- Nicolas Otamendi