Panesar was fined by police for urinating on bouncers after being thrown out of a Brighton nightclub on 5 August.
National selector Geoff Miller is confident the left-armer is back on the right track and said: "There's a very strong management in that side to help all aspects of it.
"He's appreciated he's made errors and he's very sure that those errors are behind him now.
"He's an experienced international player and it's up to him to actually produce the goods for us. He's very prepared to let his bowling do the talking for him, so I'm prepared to accept that."
Disappointed is a understatement, absolutely gutted— Graham Onions (@BunnyOnions) September 23, 2013
Yorkshire batsman Gary Ballance, Warwickshire's former Ireland bowler Boyd Rankin and Durham all-rounder Ben Stokes are the three players in the 17-man party who have yet to play Test cricket.
ENGLAND SQUAD: Alastair Cook (captain), Joe Root, Jonathan Trott, Kevin Pietersen, Ian Bell, Matt Prior, Stuart Broad, Graeme Swann, James Anderson, Jonny Bairstow, Monty Panesar, Gary Ballance, Michael Carberry, Boyd Rankin, Steven Finn, Ben Stokes, Chris Tremlett.