Khawaja has suffered a torrid time during the series, averaging 19 runs and passing 50 only once in six innings at number three as Australia's batting lineup has repeatedly failed.
Faulkner, 23, is a left-arm medium pace bowler and middle order batsman, and has taken 11 wickets in eight one-day internationals.
Shane Watson will replace Khawaja at three, with Brad Haddin moving up one to six and Faulkner at seven.
The return of Starc, who played in the first and third tests, will strengthen the lower-order batting and will offer a greater wicket-taking threat, with Bird taking only two in his one test at Durham.
England lead the series 3-0.
(Reporting by Josh Reich; Editing by Sonia Oxley)
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