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O’Driscoll, who is the first man in the professional era to be named in four Lions squads, having debuted in Australia in 2001, captained the side to New Zealand in 2005 and played in the defeat in South Africa four years ago.
The 34-year-old is joined in the squad by Leinster club-mates Jamie Heaslip, who replaced him as Ireland captain ahead of this year’s RBS Six Nations, Cian Healy, Rob Kearney, Sean O'Brien, and Jonathan Sexton.
Schmidt will no doubt be watching the tour with interest after Ireland trio Conor Murray and Paul O’Connell of Munster and Ulster’s Tommy Bowe were also named in the 37-string squad.
And Schmidt, who will see out the domestic season as Leinster coach, admitted it was a proud moment for all those selected.
“I'm delighted for all six players and it is a huge honour for them and the province to have so many representatives on the tour to Australia,” said Schmidt.
“On that note all of us at Leinster would like to add our congratulations to the other Irish representatives; Tommy Bowe, Conor Murray and Paul O'Connell.”
And with O’Driscoll continuing to break records at the very top of the game, Schmidt is hopeful he can persuade the centre to continue with Ireland.
“He's put some pressure on me, so I'd certainly like to put a bit of pressure back on him,” he added.
“He's very much his own man. He'll make his own decision but, at the same time, it doesn't stop you trying to push him towards one.”
Ireland players selected for the British and Irish Lions:
Backs: Brian O'Driscoll (Leinster), Jonathan Sexton (Leinster), Tommy Bowe (Ulster), Conor Murray (Leinster), Rob Kearney (Leinster)
Forwards: Cian Healy (Leinster), Jamie Heaslip (Leinster), Sean O'Brien (Leinster), Paul O'Connell (Munster)