Bhupathi and Max Mirnyi of Belarus have been seeded second, while Paes and his Czech partner David Rikl are the fifth seeds.
Belarus will figure in the Davis Cup World Group for the first time while Germany are relegated for the first time in 20 years.
Australian Todd Woodbridge clinched a record-equalling eighth men's doubles title at Wimbledon.
They were beaten by the Bryan twins, Bob and Mike, in the men's doubles at the French Open.
Leander's father said tennis legend Martina Navratilova has rekindled his son's zest for the game.\n\n
They beat the Indo-Belarusian pair of Mahesh Bhupathi and Max Mirnyi to make the grade at the French Open.
The US ace broke his record with a 155mph (249kph) serve as the U.S. took a 2-0 lead over Belarus in their Davis Cup semi-final.
His combination with Max Mirnyi, with whom he won the US Open doubles\n\ncrown last year, has brought him tremendous success.
They beat Joshua Eagle and Jared Palmer in the quarter-final of the Italia Masters. \n\n
The pair had to concede a walk-over at the Barcelona Open as Miryni too ill.
India will now face world number two Croatia for the Qualifiers in an away tie
Relief was at hand, however, with a cool change blowing over the city and the temperature expected to fall back below 30 by the evening.
On a largely disappointing day for Indian tennis players, Leander Paes, Rohan Bopanna and Sania Mirza lost their respective doubles matches in the second round of the Australian Open, leaving the country's challenge restricted to the mixed doubles competition.
Rohan Bopanna and Daniel Nestor went through several anxious moments before making it to the second round, even as Mahesh Bhupathi and Jurgen Melzer failed to, in the men's doubles at the Australian Open, in Melbourne, on Thursday.
Leander Paes got the better of compatriot Mahesh Bhupathi in a thrilling mixed doubles encounter to enter the third round at the Australian Open, in Melbourne, on Monday. He and Daniela Hantuchova beat eighth seeds Bhupathi and Elena Vesnina 6-0, 2-6, 10-6.
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