The Liverpool striker takes the place of Alex Oxlade-Chamberlain as Roy Hodgson reverts to a standard 4-4-2 formation, with Ashley Young moving from a central role to the left wing
Carroll comes into the side at the expense of 18-year-old Alex Oxlade-Chamberlain, who drops to the bench. Ashley Young had played in support of Welbeck in England's first Group D game against France but now reverts to Oxlade-Chamberlain's left wing position.
Otherwise, England are unchanged, with Scott Parker, Steven Gerrard and James Milner completing Roy Hodgson's midfield.
At the back, Glen Johnson, John Terry, Joleon Lescott and Ashley Cole retain their places, with Joe Hart selected once again in goal.
Sweden. who announced their starting XI earlier on Friday, have made three changes to the side that lost 2-1 against Ukraine. Johan Elmander replaces Markus Rosenberg in attack, with Mikael Lustig and and Ola Toivonen also dropping out.
Jonas Olsson will partner Olof Mellberg in defence, with Andreas Granqvist shifting to Lustig's right-back position. Anders Svensson has been reunited with Kim Kallstrom in midfield, as Rasmus Elm pushes forward to replace Toivonen on the left wing.
England (4-4-2): Hart; Johnson, Terry, Lescott, Cole; Milner, Gerrard, Parker, Young; Welbeck, Carroll.
Sweden (4-2-3-1): Isaksson; Granqvist, Mellberg, Jonas Olsson, Martin Olsson; Svensson, Kallstrom; Larsson, Ibrahimovic, Elm; Elmander.