The 25-man squad consists of players from 13 of the 16 sides, with 23 of those chosen finishing in the top 10 of their respective club's best and fairest counts this year.
Malthouse, who will be assisted by Nathan Buckley, Glen Jakovich and Matthew Lappin in coaching the side, emphasised how the selected squad symbolises the emergence of football's next crop of stars.
"This is what we believe is the next generation of players coming through representing Australia," he said.
"The side has been picked on form, on the knowledge of what type of player we require generally by the two coaches next to me (Buckley and Lappin) plus Glen Jakovich.
"We have young coaches, a reasonably young side; Brent Harvey is the oldest at 30 and the rest of them are fairly young men.
"We've picked the side to celebrate football's involvement in Australia over 150 years, and we've picked it because this will be the climax of going out there to -- not win at all costs -- but certainly win within the rules.
"We're picking a side to win; we're picking what we believe to be an exciting young side."
Malthouse conceded the squad's selection had been influenced by the unavailability of some key players, and noted its inexperience in regard to the hybrid game. Only six members -- Harvey, Campbell Brown, Ryan Crowley, Adam Selwood, Kade Simpson and Daniel Wells – have represented Australia in International Rules series before.
However, he emphasised the enthusiasm of those that have made the squad, and encouraged a strong turnout at both the Perth and Melbourne games.
"We understand there are going to be players mentioned that aren't going to be part of it," Malthouse said.
"Basically, we've got a full complement of players that want to be out here, but those that wanted to be and won't be part of the side have been injured or are having operations.
"Under those circumstances, it has cut a few of those players out.
"We know how the Western Australian people get behind these games, so we're desperate to make sure we have all Victorians that love their Australian Rules football come to the MCG.
"It's a great week in Melbourne, or a great month even, and we want to make sure that stadium is rocking to give these players every opportunity to display their wares and represent their great country."
The full 25-man Australian squad:
Nathan Bock (Adelaide), Matthew Boyd (Western Bulldogs), Jared Brennan (Brisbane Lions), Campbell Brown (Hawthorn), Shaun Burgoyne (Port Adelaide), Matt Campbell (North Melbourne), Ryan Crowley (Fremantle), Michael Firrito (North Melbourne), Nathan Foley (Richmond), Brent Harvey (North Melbourne), Roger Hayden (Fremantle), Leigh Montagna (St Kilda), Daniel Motlop (Port Adelaide), Marc Murphy (Carlton), Michael Osborne (Hawthorn), Scott Pendlebury (Collingwood), Drew Petrie (North Melbourne), David Rodan (Port Adelaide), Max Rooke (Geelong), Brad Sewell (Hawthorn), Kade Simpson (Carlton), Adam Selwood (West Coast), Dale Thomas (Collingwood), Scott Thompson (Adelaide), Daniel Wells (North Melbourne).
First Test – Subiaco, Perth, Friday 24 October
Second Test – MCG, Melbourne, Friday 31 October
