Jarvis, 24, had figured in two of Capello's provisional squads this season but this will be his first taste of international action after he failed to make the final cut on those occasions.
With Arsenal winger Theo Walcott ruled out through injury, Capello has handed Jarvis his chance to compete for the wide berths with Aaron Lennon and Ashley Young after an impressive season with Mick McCarthy's team.
Jarvis, who started his career with Gillingham before joining Wolves in 2007, underlined his growing reputation with a fine finish to clinch a 1-0 win over local rivals Aston Villa on Saturday.
Tottenham star Lennon is included for the first time since England's last qualifier against Montenegro in October after missing the friendlies against France and Denmark.
Liverpool striker Andy Carroll, who impressed Capello when he made his debut in the defeat by France in November, also returns after proving his fitness for his club.
The £35 million ($56.8 million) forward missed last month's encounter with Denmark due to a thigh injury but Carroll is back after starting Liverpool's last two matches, against Braga and Sunderland.
England squad for next Saturday's Euro 2012 qualifying match against Wales in Cardiff and the friendly against Ghana at Wembley on March 29.
Goalkeepers: Ben Foster (Birmingham), Robert Green (West Ham), Joe Hart (Manchester City)
Defenders: Leighton Baines (Everton), Gary Cahill (Bolton), Ashley Cole (Chelsea), Michael Dawson (Tottenham), Phil Jagielka (Everton), Glen Johnson (Liverpool), Joleon Lescott (Manchester City), John Terry (Chelsea, capt), Kyle Walker (Aston Villa).
Midfielders:Gareth Barry (Manchester City), Stewart Downing (Aston Villa), Matt Jarvis (Wolves), Frank Lampard (Chelsea), Aaron Lennon (Tottenham), James Milner (Manchester City), Scott Parker (West Ham), Ashley Young (Aston Villa), Jack Wilshere (Arsenal).
Strikers:Darren Bent (Aston Villa), Andy Carroll (Liverpool), Peter Crouch (Tottenham), Jermain Defoe (Tottenham), Wayne Rooney (Manchester United).