Loftus-Cheek has made seven appearances for Palace who are managed by ex-Three Lions boss Roy Hodgson, this season and has made a notable impression despite the Eagles being bottom of the Premier League.
On loan Chelsea striker Tammy Abraham is among three uncapped players included in England manager Gareth Southgate's squad for the friendlies against Germany and Brazil later this month as preparations for next summer's World Cup in Russian Federation begin in earnest.
England have called up the uncapped Tammy Abraham, Joe Gomez and Ruben Loftus-Cheek for their friendlies against Germany and Brazil at Wembley this month, the Football Association said on Thursday.
"If I am asking club managers to be fearless and pick young players, then I think I have got to do the same".
He has scored four goals and provided 1 assist so far this season, to help his side sit just above the relegation zone.
Manchester United's Ashley Young, who last played for his country in September 2013, was recalled for his impressive run under Jose Mourinho at Manchester United, while full back Danny Rose and Jamie Vardy returned from injury.
Explaining the return of 32-year-old Young, Southgate said: "His performances warrant it".
Southgate said he resisted the temptation to experiment while World Cup qualification was still uncertain but, with a place at next summer's tournament now assured, he has shuffled his pack. "It's not frustrating. We were not the only club that had an interest in him".
" I don't know how you get in an England squad without getting in the Arsenal team."