The Liverpool winger could win his second cap for his country while the likes of Jermain Defoe, Alex Oxlade-Chamberlain, Steven Caulker and Tom Cleverley are also included
Sterling could win his second cap for his country, having previously been selected for the 4-2 friendly defeat to Sweden back in November 2012, while it is the first time that Shaw has been called up after impressing with his performances in the Premier League this season.
Jermain Defoe, who officially becomes a Toronto FC player on Friday, is also named in Hodgson's squad despite only making one Premier League start for Tottenham since December 7.
Everton youngster Ross Barkley is again named as part of the 30-man party although team-mate Barry, who was widely expected to be given the nod, has been left out along with Sunderland winger Johnson.
There is a place for Danny Welbeck, however, who returned for Manchester United against Olympiakos on Tuesday having previously been out of action since February 1 with a knee injury.
Arsenal midfield duo Jack Wilshere and Alex Oxlade-Chamberlain are both included, while Glen Johnson is also selected, having returned to action for Liverpool in their 4-3 win over Swansea City.
Full England squad to face Denmark:
Goalkeepers: Fraser Forster (Celtic), Ben Foster (West Brom), Joe Hart (Manchester City), John Ruddy (Norwich City)
Defenders: Leighton Baines (Everton), Gary Cahill (Chelsea), Steven Caulker (Cardiff City), Ashley Cole (Chelsea), Glen Johnson (Liverpool), Chris Smalling (Manchester United), Kyle Walker (Tottenham), Luke Shaw (Southampton)
Midfielders: Ross Barkley (Everton), Michael Carrick (Man Utd), Tom Cleverley (Man Utd), Steven Gerrard (Liverpool), Jordan Henderson (Liverpool), Adam Lallana (Southampton), Frank Lampard (Chelsea), James Milner (Man City), Alex Oxlade-Chamberlain (Arsenal), Raheem Sterling (Liverpool), Andros Townsend (Tottenham), Jack Wilshere (Arsenal)
Strikers: Jermain Defoe (Tottenham, imminently Toronto FC), Rickie Lambert (Southampton), Jay Rodriguez (Southampton), Wayne Rooney (Man Utd), Daniel Sturridge (Liverpool), Danny Welbeck (Man Utd)