Australia's selectors have wielded the axe after the Ashes series loss to England [Images], dropping Damien Martyn, Jason Gillespie and Michael Kasprowicz from the Test squad for next month's challenge series against the Rest of the World.

Gillespie, Kasprowicz and opening batsman Matthew Hayden [Images] were also dropped from the one-day squad as Australia start rebuilding towards the 2007 World Cup.

Australia's chairman of selectors Trevor Hohns said the Ashes loss had accelerated the need for changes to the Test side but did not necessarily mean the end of international careers.

Fast bowlers Gillespie and Kasprowicz were given early notice of their impending sacking when they were cut during the Ashes, while Martyn averaged less than 20 with the bat in the five-match series.

"We expect that all three players who have not been selected, will go back to state cricket and get back to the sort of form they were in 12 months ago," Hohns said in a statement.

Australia won their limited-overs series against England before the Ashes began but Hohns said there is no room for complacency with the World Cup now less than two years away.

"We have re-jigged the one-day side to what we hope will provide a range of options to take on a formidable World XI side as well as forming the nucleus of the 2007 squad," he said.

"It doesn't mean these players can't come back to play one-day cricket for Australia, but at the same time we are moving forward."

The panel of selectors chose a 13-man squad for the six-day Test in Sydney from October 14-19 and a 14-man squad for the three one-day matches at Melbourne's Docklands Stadium on October 5, 7 and 9.

Middle-order batsman Brad Hodge, all rounder Shane Watson and leg spinner Stuart MacGill were added to the Test squad while paceman Shaun Tait, left-arm quick Nathan Bracken [Images] and all rounder James Hopes were included in the one-day side.

BRIGHTEST PROSPECTS

Hodge and MacGill were both included in the Ashes squad but did not play any of the Tests. Their chances of playing in Sydney will revolve around Watson, a 24-year-old regarded as one of the brightest prospects in Australian cricket.

"Watson gives the squad added flexibility," Hohns said.

"We can choose to play two spinners if the pitch looks like it will offer them something, or we can play four bowlers with Watson providing a fifth option."

Hopes, 26, made his one-day international debut against New Zealand [Images] this year and provided the selectors with a timely reminder of his ability with a century for Australia A in Pakistan on Monday.

Tait, 22, is yet to play a one-day international but was included in the last two Ashes Tests after Gillespie and Kasprowicz lost form.

"Everybody that got dropped will be disappointed," middle-order batsman Michael Clarke [Images] told a news conference on Tuesday.

"I don't know if they'll be surprised. The reality is...if you don't perform, you won't be selected.

"It's disappointing to return home without the Ashes, but that's the way this great game goes. I know all the boys will be really keen to get out there and prove we are still number one.

"I think the Rest of the World will be favourites, but I don't see any reason why we can't get out there and win the one-dayers and the Test."

Test squad: Ricky Ponting [Images] (captain), Adam Gilchrist [Images], Michael Clarke, Matthew Hayden, Brad Hodge, Simon Katich, Justin Langer, Brett Lee [Images], Stuart MacGill, Glenn McGrath, Shaun Tait, Shane Warne [Images], Shane Watson.

One-day squad: Ricky Ponting (captain), Andrew Symonds [Images], Nathan Bracken, Michael Clarke, Adam Gilchrist, Brad Hogg [Images], James Hopes, Michael Hussey, Simon Katich, Brett Lee, Damien Martyn, Glenn McGrath, Shaun Tait, Shane Watson.