Fakhar Zaman, who scored a match-winning 114 in Pakistan's 180-run victory over arch-rivals India in the final, was picked alongside the tournament's top scorer Shikhar Dhawan of India.
Bangladesh's Tamim Iqbal was slotted in at number three after driving his side to their maiden semi-final at a major global tournament.
Joe Root represented semi-finalists England for his aggregate of 258 runs while Ben Stokes was rewarded for his all-round contribution.
The bowling lineup was led by Pakistan paceman Hasan Ali, who finished with 13 wickets, and his team mate Junaid Khan. Bhuvneshwar Kumar, who claimed seven dismissals for India, was also named.
England's Adil Rashid was the only spinner after claiming seven wickets.
“To be appointed as captain of the Team of the ICC Champions Trophy 2017, which includes some of the finest and most attractive cricketers of this generation, is the perfect icing on the cake,” Sarfraz said in an International Cricket Council statement.
Team: Shikhar Dhawan (India), Fakhar Zaman (Pakistan), Tamim Iqbal (Bangladesh), Virat Kohli (India), Joe Root (England), Ben Stokes (England), Sarfraz Ahmed (Pakistan) (captain and wicketkeeper), Adil Rashid (England), Junaid Khan (Pakistan), Bhuvneshwar Kumar (India), Hasan Ali (Pakistan), Kane Williamson (New Zealand) (12th man)
(Reporting by Hardik Vyas in Bengaluru, editing by Ed Osmond)
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