Iftikhar will fly out on Wednesday to join the team for the last three ODIs.
Rao Iftikhar has flown will join the Pakistan Test side in India as a replacement for Umar Gul.
Afridi's appointment comes in the build-up to New Zealand's two-Test tour of Pakistan, beginning on Monday.
Chief Selector Wahab Riaz held a press conference to formally announce the immediate withdrawal of Butt's name from the consultancy panel.
Butt was suspended for five years for his role in spot-fixing during the Pakistan and England Test match in August, 2010.
The selectors have brought in leg-spinner Danish Kaneria, pacer Mohammad Sami and batsman Faisal Iqbal for the three-Test series against India starting on November 22.
Pacemen Rao Iftikhar and Umar Gul took seven wickets to overshadow Chris Gayle's brilliant hundred as Pakistan beat the West Indies by 31 runs in the third one-dayer to wrap up a 3-0 series whitewash on Sunday.
Seamers Rao Iftikhar and Umar Gul shared six wickets and Mohammad Yousuf hammered a century to guide Pakistan to a 25-run win over South Africa in the second one-dayer at the Gaddafi stadium on Saturday.
Pakistan won the toss and elected to bat against India in their Asia Cup ODI.
India won the toss and opted to bat against Pakistan in the second match of the triangular one-day series at the Sher-e-Bangla National Stadium in Dhaka on Tuesday. India have included uncapped batsman Yusuf Pathan in the team for their first match of the tournament.
India brought back batsman Virender Sehwag in place of left-arm spinner Murali Kartik.
Teenager Umar Akmal smashed an unbeaten 102 off 72 balls as Pakistan beat Sri Lanka in the fourth one-day international by 146 runs on Friday to record their first victory on a dismal tour.
Pakistan fast bowler Shoaib Akhtar has been ruled out of the World Twenty20 due to a skin infection in his groin, a Pakistan Cricket Board spokesman said on Thursday. 'The medical panel of the board has examined Shoaib and he has been advised 10-12 days rest for a skin infection,' the spokesman said.
The PCB left out fast bowler Shoaib Akhtar from a 16-member squad for the six-match one day series against India.
Injured Pakistan paceman Umar Gul may not be fit for the second Test against India which could force the team management to recall Rao Iftikhar Anjum as a cover, said Chief Selector Salahuddin Ahmed on Friday.
Pakistan have selected two uncapped teenagers in a 15-man squad for the two-Test series against Sri Lanka starting on October 20.
The Pakistan selectors announced a 15-member squad only for the third ODI against India in Peshawar on Friday.
India, Pakistan, Sri Lanka, Afghanistan and Bangladesh can beat each other on their day
Pakistan skipper Younis Khan confirmed India's worst fears by admitting that his side would field their reserve players in Wednesday's Champions Trophy game against Australia at Centurion.
Pakistan have a strong pace attack for the one-day series against Bangladesh even without banned strike bowler Shoaib Akhtar, captain Shoaib Malik said. Malik said his players are professionals and would not let themselves be distracted by the controversy generated by Shoaib's five-year suspension, handed down last week for repeated indiscipline.
