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Foden’s selection caps a memorable campaign for the 18-year-old following City’s unprecedented clean sweep of all four domestic English trophies.
A World Cup winner at Under-17 level with England in 2017, Foden earned his first call-up for the Under-21s last October and has cemented himself as a key member of Aidy Boothroyd’s squad.
Former City goalkeeper Angus Gunn – now at Southampton – has also been named in the 23-man squad.
"This is a really strong squad," said Boothroyd. "I'm really pleased with the group of players who will be representing us at the Euros.
"We have a big pool of talent in the England set-up and I had some tough selection decisions to make as there's a lot of strength in depth.
"This group have also won a lot at youth level and know the work and application that it takes."
England face France, Romania and Croatia in Group C with their opening game against France on 18 June.
Goalkeepers: Angus Gunn (Southampton), Dean Henderson (Manchester United), Freddie Woodman (Newcastle United)
Defenders: Jake Clarke-Salter (Chelsea), Jay Dasilva (Chelsea), Lloyd Kelly (Bournemouth), Jonjoe Kenny (Everton), Ezri Konsa (Brentford), Fikayo Tomori (Derby County, loan from Chelsea), Aaron Wan-Bissaka (Crystal Palace)
Midfielders: Harvey Barnes (Leicester City), Hamza Choudhury (Leicester City), Kieran Dowell (Everton), Phil Foden (Manchester City), Morgan Gibbs-White (Wolves), James Maddison (Leicester City), Mason Mount (Derby County, loan from Chelsea), Ryan Sessegnon (Fulham)
Forwards: Tammy Abraham (Aston Villa, loan from Chelsea), Dominic Calvert-Lewin (Everton), Demarai Gray (Leicester City), Reiss Nelson (Arsenal), Dominic Solanke (Bournemouth)
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