Fly-half Freddie Burns gets his first call-up and lock Courtney Lawes is back for the first time since February.
Last five Twickenham meetings
England 16-26 New Zealand
England 6-19 New Zealand
England 6-32 New Zealand
England 20-41 New Zealand
England 19-23 New Zealand
"I'm massively excited," Farrell told BBC Sport. "What better way to prove yourself than to play against the best team in the world? Not just for me but for the team as well."
Farrell has to share the fly-half duties for Saracens with Charlie Hodgson,
who has retired from international duty,
but England insisted the youngster's selection against the All Blacks was not a gamble.
"Owen had an outstanding season in the Six Nations. He contributed massively," said head coach Stuart Lancaster.
"I don't think his form dropped off as many suggested at the end of last season - he had had a long, hard season.
"He had a slow start to his season with a shoulder injury but in the last four weeks he has been outstanding in training."
Farrell is looking forward to the challenge of facing up to New Zealand fly-half Dan Carter, who is also on the IRB's Player of the Year shortlist.
"Dan Carter is a world-class player and one I've wanted to play against for a long time," Farrell said.
"But I think any team is beatable. No one is invincible. We've just got to be on top of our game, and take our game to them - not wait for them to strike first.
"We can't let them get on top of us before we bite back. We've got to impose ourselves on them."
Northampton second row Lawes, who replaces Saracens lock Mouritz Botha, has been battling a series of injuries over the past year and the 23-year-old last played for England against Wales in the Six Nations.
Lancaster undaunted by All Blacks
He damaged his knee against Saracens on 27 October but was on the field for nearly an hour for Saints in their Premiership
win over London Welsh
Gloucester's Burns, 22, has been in excellent form for the Cherry and Whites this season, earning plaudits for his attacking style and improved game management, and takes Farrell's place on the bench.
Prop Alex Corbisiero did not train on Tuesday but has shaken off a knee problem to be named in the side.
The All Blacks, unbeaten in 20 Tests since the start of their victorious World Cup campaign last September, anticipate a "huge battle" at Twickenham but have not lost in their last five visits to London.
Their previous defeat, in 2002,
was the last time they lost a Test on tour in Europe, and the world champions have won the last nine encounters between the two countries.
England team to face New Zealand:
15. Alex Goode (Saracens, 5 caps); 14. Chris Ashton (Saracens, 28 caps), 13. Manusamoa Tuilagi (Leicester Tigers, 16 caps), 12. Brad Barritt (Saracens, 10 caps), Mike Brown (Harlequins, 10 caps); 10. Owen Farrell (Saracens, 11 caps), 9. Ben Youngs (Leicester Tigers, 27 caps); 1. Alex Corbisiero (London Irish, 17 caps), 2. Tom Youngs (Leicester Tigers, 3 caps), 3. Dan Cole (Leicester Tigers, 34 caps), 4. Joe Launchbury (London Wasps, 3 caps), 5. Geoff Parling (Leicester Tigers, 11 caps), 6. Tom Wood (Northampton Saints, 12 caps), 7. Chris Robshaw (Harlequins, capt, 11 caps), 8. Ben Morgan (Gloucester Rugby, 8 caps)
16. David Paice (London Irish, 5 caps), 17. David Wilson (Bath Rugby, 22 caps), 18. Mako Vunipola (Saracens, 3 caps), 19. Courtney Lawes (Northampton Saints, 14 caps), 20. James Haskell (London Wasps, 44 caps), 21. Danny Care (Harlequins, 36 caps), 22. Freddie Burns (Gloucester Rugby, uncapped), 23. Jonathan Joseph (London Irish, 3 caps)
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