Jeremy Paul has been discarded by the Wallabies management

Surprise cuts include hooker Jeremy Paul, plus New South Wales scrum-halves Josh Valentine and Brett Sheehan.

Yet rookie Waratah Josh Holmes, 20, is included along with George Gregan and Sam Cordingley at number nine.

Clyde Rathbone and Morgan Turinui are out injured, while lock Mitch Chapman will undergo shoulder surgery.

Young Reds playmaker Berrick Barnes makes the cut along with Stephen Larkham and Sam Norton-Knight at fly-half, but teenagers Quade Cooper and Kurtley Beale missed out.

Adam Freier and Reds' Stephen Moore look to have the hooking role sewn-up after Paul's non-selection, while Julian Huxley looks odds-on to take over at full-back for the injured Chris Latham.

Seven more players will be cut after a three-day training camp in Sydney this week to give the final 30-man squad for the upcoming Test series.

Wallabies head coach John Connolly claimed that many places are still up for grabs, with heavy competition in the positions of prop, lock, number eight, centre and wing.

"The camp will give us a starting point in our preparation for the first Test against Wales in Sydney on 26 May," Connolly said.

"It will give us the opportunity to have a closer look at a few of the players before we decide on the final squad of 30 next Sunday."

Most of the 22 players cut will be part of the 25-man Australia A squad for the five-match Pacific Nations Cup in May and June.

Australia 37-man squad for three-day Sydney training camp:

Forwards: Al Baxter, Rodney Blake, Benn Robinson, Matt Dunning, Guy Shepherdson, Adam Freier, Stephen Moore, Mark Chisholm, Nathan Sharpe, Dan Vickerman, Hugh McMeniman, James Horwill, Rocky Elsom, George Smith, Phil Waugh, Stephen Hoiles, David Lyons, Wycliff Palu, Jone Tawake.
Backs: George Gregan, Sam Cordingley, Josh Holmes, Stephen Larkham, Sam Norton-Knight, Berrick Barnes, Matt Giteau, Stirling Mortlock, Adam Ashley-Cooper, Ryan Cross, Scott Staniforth, Lote Tuqiri, Mark Gerrard, Digby Ioane, Drew Mitchell, Lachlan Turner, Julian Huxley, Cameron Shepherd.

Dropped players: Alister Campbell, Nic Henderson, Jeremy Paul, Clyde Rathbone, Julian Salvi, Adam Wallace-Harrison, Richard Brown, Gareth Hardy, James Hilgendorf, Junior Pelesasa, David Pocock, Troy Takiari, Rudi Vedelago, Rodney Blake, Mitchell Chapman, Quade Cooper, John Roe, Kurtley Beale, Will Caldwell, Tatafu Polota-Nau, Brett Sheehan, Josh Valentine, Morgan Turinui.