The holders India initially delayed the announcement amid a revenue sharing disagreement with the International Cricket Council (ICC).
Unhappy with the new revenue model, which considerably slashes their share from global events in the 2015-23 cycle, India failed to submit a squad by an April 25 deadline, triggering panic among advertisers.
Several members of the Indian cricket board (BCCI) were in favour of pulling out of the tournament but court-appointed administrators, who are currently supervising BCCI operations, were against such a drastic move.
The top eight sides in the world rankings compete in the Champions Trophy with India winning the last edition in 2013.
India, who begin their Group B campaign against arch-rivals Pakistan at Birmingham on June 4.
The ICC Champions Trophy will be played in England and Wales and starts on June 1 when the hosts take on Bangladesh at The Oval.
Virat Kohli (captain), Shikhar Dhawan, Rohit Sharma, Ajinkya Rahane, MS Dhoni, Yuvraj Singh, Kedar Jadhav, Hardik Pandya, Ravichandran Ashwin, Ravindra Jadeja, Mohammad Shami, Umesh Yadav, Bhuvneshwar Kumar, Jasprit Bumrah, Manish Pandey