After missing out on a place at the Copa America through injury, the 38-year-old is one of three overage players selected by Andre Jardine.
Alves, who returned to Brazil to join Sao Paulo in August 2019, has won 118 caps for his country during a stellar career.
Marquinhos and Neymar were expected to join him in Japan, but PSG weren’t prepared to release two of their most important players.
Neymar played a decisive role in Brazil’s success at the 2016 Olympics in Rio de Janeiro, scoring four goals in the knockout stages.
He got his first against Colombia, followed by a brace in the 6-0 thrashing of Honduras and the opener against Germany in the final.
Although the hosts were pegged back, and the game went to penalties, Neymar scored the decisive effort to clinch gold.
Jardine’s side have been drawn in Group D alongside Germany, the Ivory Coast and Saudi Arabia, with the top two going through to the quarter-finals.
Goalkeepers: Brenno (Gremio), Lucao (Vasco da Gama), Santos (Athletico Paranaense)
Defenders: Nino (Fluminense), Ricardo Graca (Vasco da Gama), Guilherme Arana (Atletico Mineiro), Gabriel Menino (Palmeiras), Dani Alves (Sao Paulo), Diego Carlos (Sevilla), Abner Vinicius (Athletico Paranaense), Bruno Fuchs (CSKA Moscow)
Midfielders: Matheus Henrique (Gremio), Bruno Guimaraes (Lyon), Douglas Luiz (Aston Villa), Claudinho (RB Bragantino), Reinier (Borussia Dortmund)
Forwards: Gabriel Martinelli (Arsenal), Paulinho (Bayer Leverkusen), Richarlison (Everton), Matheus Cunha (Hertha Berlin), Antony (Ajax), Malcom (Zenit St Petersburg)
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