AS Roma captain Totti, who quit the national side after their 2006 World Cup triumph, had considered making himself available for the June 11-July 11 tournament in South Africa but the inconsistent Azzurri will have to do without his creativity.
Lippi has not disclosed if Totti had offered to play.
The inclusion of Villarreal forward Giuseppe Rossi at the expense of Juventus centre back Nicola Legrottaglie provided the only other element of surprise in the 30-man squad, which will be cut to 23 with four standby players next Tuesday.
Legrottaglie has not been a regular for a struggling Juve this season but his omission means Italy lack experienced cover for centre backs Fabio Cannavaro and Giorgio Chiellini.
Defenders Salvatore Bocchetti, Leonardo Bonucci and Mattia Cassani have just six caps between them.
"Obviously, against some teams it will be necessary to make selections with great care, especially in defence. At the moment, I think it's the area that there are most doubts about," former Italy midfielder Stefano Fiore said.
"Italy should have started this process of making the team younger a little earlier."
Italy squad: Goalkeepers: Gianluigi Buffon (Juventus), Morgan De Sanctis (Napoli), Federico Marchetti (Cagliari), Salvatore Sirigu (Palermo).
Defenders: Salvatore Bocchetti (Genoa), Leonardo Bonucci (Bari), Fabio Cannavaro (Juventus), Mattia Cassani (Palermo), Giorgio Chiellini (Juventus), Domenico Criscito (Genoa), Fabio Grosso (Juventus), Christian Maggio (Napoli), Gianluca Zambrotta (AC Milan). Midfielders: Mauro Camoranesi (Juventus), Antonio Candreva (Juventus), Andrea Cossu (Cagliari), Daniele De Rossi (AS Roma), Gennaro Gattuso (AC Milan), Claudio Marchisio (Juventus), Riccardo Montolivo (Fiorentina), Angelo Palombo (Sampdoria), Simone Pepe (Udinese), Andrea Pirlo (AC Milan). Forwards: Marco Borriello (AC Milan), Antonio Di Natale (Udinese), Alberto Gilardino (Fiorentina), Vincenzo Iaquinta (Juventus), Giampaolo Pazzini (Sampdoria), Fabio Quagliarella (Napoli), Giuseppe Rossi (Villarreal).