Mahmoud has been unattached since parting ways with Saudi Arabian club Al Ahli in December 2013, yet he has still been selected by head coach Radhi Shenaishil for the tournament in Australia.
The 31-year-old was the player of the competition in 2007 when Iraq lifted the trophy, scoring four goals including the winner in the 1-0 final victory over Saudi Arabia.
Shenaishil's youthful group contains two teenagers, with 18-year-old Humam Tariq and 19-year-old Mahdi Kamil both given the chance to shine.
Iraq have been drawn in Group D alongside holders Japan, Jordan and Palestine. They start their quest for the crown against Jordan in Brisbane on January 12.
Squad in full:
Goalkeepers: Ali Yasin (Naft Al Janoub), Jalal Hasssan (Arbil), Mohammed Hamed (Al Shurta)
Defenders: Ahmed Ibrahim (Ajman), Ali Adnan (Caykur Rizespor), Ali Bahjat (Al Shurta), Ali Faiz (Arbil), Dhargham Ismail (Al Shurta), Salak Shaker (Al Shurta), Samih Saeed (Nadi Amana Baghdad), Walid Salim (Al Shurta),
Midfielders: Ahmed Yasin (Orebro SK), Ali Husni (Al Minaa), Amjad Kelaf (Al, Shurta), Humam Tariq (Al Dhafra), Mahdi Kamil (Al Shurta), Osama Rashid (Alphense Boys) Saad Abdul Amir (Arbil), Yaser Kasim (Swindon Town)
Forwards: Alaa Abdul Zahra (Al Shurta), Justin Meram (Columbus Crew), Marwan Hussein (Al Shurta), Younis Mahmoud (Unattached)
