All-rounder Shane Watson has been welcomed back into the Australian squad for the first Test against South Africa at the WACA.

Watson impressed the selectors with career-best figures of seven for 69 in the first innings and an important half-century in Queensland's Sheffield Shield game against South Australia last week.

"Shane Watson is back in the 12 and one of the main reasons he wasn't in the 12 for Adelaide (against New Zealand) was that we wanted to take the opportunity for him to play for Queensland," said national selection panel chairman Andrew Hilditch. "He had a good Sheffield Shield game, taking wickets and making runs, and adds great flexibility to the squad for this first Test."

Victoria paceman Peter Siddle will make way for Watson, while Nathan Hauritz has been replaced by Jason Krejza for the Perth Test.

"Jason richly deserves to be back in the Test squad following his debut in India," added Hilditch.

"Having said that, Nathan Hauritz bowled well in Adelaide and we were pleased with his performance."