Australia will play South Africa in three T20 Internationals from February 21-26 and three One-Day Internationals from February 29-March 7.
Aaron Finch will also lead the side as skipper after Australia went down 2-1 to India in a three-match ODI series last month.
Jhye Richardson has been included for the T20 matches, while Marcus Stoinis has been overlooked despite winning the BBL Player of the Year award this week.
DArcy Short, Ashton Turner, Peter Handscomb, Ben McDermott and Billy Stanlake have all been dropped from the two squads.
Maxwells return comes on the back of strong form for the Melbourne Stars, as well as stepping away from national duties in October for mental health reasons amid the T20I series against Pakistan.
“It is fantastic to have Glenn back in both squads given his brilliant form in the middle order for the Stars along with his results with the ball,” National Selectors Trevor Hohns.
“Glenn was one of the first picked in the most recent T20 team at the start of the summer, prior to his break from the game.”
Marsh returns after missing the latest white-ball matches following a hand injury sustained early in the domestic summer.
The big all-rounder enjoyed a strong BBL season for the Perth Scorchers, including selection in the BBL Team of the Year, warranting his recall.
“(Marsh) has been in tremendous touch with the bat for the Scorchers since his return from injury and is now back bowling well,” Hohns said.
“His performances warranted inclusion in the area he operates as a powerful middle-order batsman and handy bowler.”
Hohns said Richardson demanded inclusion after an excellent BBL season, while Wade was in red hot form. He added that Stoinis was unlucky to miss out.
Australia T20 squad: Aaron Finch (c), Sean Abbott, Ashton Agar, Alex Carey, Pat Cummins, Mitch Marsh, Glenn Maxwell, Jhye Richardson, Kane Richardson, Steve Smith, Mitchell Starc, Matthew Wade, David Warner, Adam Zampa
Australia ODI squad: Aaron Finch (c), Ashton Agar, Alex Carey (vc), Pat Cummins (vc), Josh Hazlewood, Marnus Labuschagne, Mitch Marsh, Glenn Maxwell, Kane Richardson, Steve Smith, Mitchell Starc, Matthew Wade, David Warner, Adam Zampa