The side includes seven players from the two finalists - India and Pakistan. All in all, it includes players from five of the eight participating sides.
The side includes four Pakistanis, three Indians, three Englishmen and one Bangladeshi, with Kane Williamson of New Zealand as 12th man.
India opener Shikhar Dhawan and Pakistan's Hassan Ali had already won the Golden Bat and Gold Ball trophies for finishing as the most successful batsman and bowler, respectively, while Tamim Iqbal of Bangladesh was selected after driving Bangladesh to their maiden semi-final in a major ICC event.
Joe Root was rewarded for his 258 runs in the tournament, while Ben Stokes was selected as an all-rounder following his aggregate of 184 runs and three wickets.
Fast bowlers Junaid Khan, Bhuvneshwar Kumar and Hassan shared 28 wickets between them in the tournament, while wrist-spinner Rashid finished with seven wickets with an economy rate of 4.73.
Pakistan had started disastrously when they suffered a 124-run thrashing at the hands of India, before they bounced back to defeat South Africa by 19 runs, Sri Lanka by three wickets and England in the semi-final by eight 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," remarked Sarfraz.
ICC Team of the ICC Champions Trophy 2017 (in batting order) is:
Shikhar Dhawan (India)
Fakhar Zaman (Pakistan)
Tamim Iqbal (Bangladesh)
Virat Kohli (India)
Joe Root (England)
Ben Stokes (England)
Sarfraz Ahmed (Pakistan)
Adil Rashid (England)
Junaid Khan (Pakistan)
Bhuvneshwar Kumar (India)
Hassan Ali (Pakistan)
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