Former Australia skipper Steve Waugh, who quit Test cricket after the drawn series with India earlier this month, will lead the Prime Minister's XI in a one-day game against the tourists at Manuka Oval in Canberra on January 28.

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"It's a tremendous honour to be invited by the Prime Minister [John Howard] to captain the side against India," Waugh said in a statement released by Cricket Australia on Friday.

Waugh, 38, who played a world record 168 Tests, is continuing to captain New South Wales in the 2003-04 interstate competition.

"I thought I had played my last [international] match against India in Sydney earlier this month. But I guess I have another opportunity to face a very in-form team that will no doubt be looking to maintain its successful tour to date.

"While the remainder of the Prime Minister's side has yet to be selected, it has traditionally featured some outstanding talent in Australian cricket and it's a good chance to lead a team outside a Test match or domestic game."

Waugh follows the example of his twin brother and former Australia Test batsman Mark Waugh, who captained the Prime Minister's XI against England at Manuka Oval in 2002-03.