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During the course of the World Cup in England, Rayudu had announced his retirement after he wasn't chosen as a replacement for the injured Shikhar Dhawan despite being named one of five stand-bys for the quadrennial event.
Both Smith and Warner are eligible to return to the national side after their 12-month suspensions for ball-tampering ended on Thursday.
Kallis said the Proteas will go into the mega-event as underdogs for the first time.
The 35-year-old fast bowler, who has taken the most wickets (154 in 110 matches) since the first edition of the IPL in 2008, was bought by Mumbai Indians for Rs 2 crore in the January auction.
Former captain and India 'A' team coach Rahul Dravid said there cannot be a blanket case that all the World Cup-bound players should be rested.
Despite losing the recent home One-Day International series 2-3 to Australia, the Virat Kohli-led Team India is considered the favourites for the upcoming World Cup.
While the national selectors are still looking to fill the No.4 slot in the batting line-up, another place up for grabs is the fourth pace bowler's slot.
A match-winning performance against Australia in the second ODI has boosted the Tamil Nadu all-rounder's chances.
Shankar's biggest competitor could be Ambati Rayudu, who, despite a healthy batting average of 47-plus, is now slipping in the pecking order.
Smith and Warner were suspended for 12 months for their roles in a ball-tampering scandal in South Africa last year and can return to top-level cricket at the end of the month.
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