Warburton, 28, joins England's Martin Johnson as the only men to have led the Lions twice, having skippered them on the successful 2013 tour of Australia.
Hartley misses out despite leading England to successive Six Nations titles, with his understudy Jamie George preferred at hooker alongside Rory Best and Ken Owens.
Coach Warren Gatland's 41-man squad included a few surprises, not least England centre Jonathan Joseph, who had been widely predicted in local media to have missed out.
Fellow England centre and rugby league convert Ben Te'o was also in, as was Harlequins prop Kyle Sinckler, who has yet to start a test for England, and winger Jack Nowell, who has struggled to nail down a starting place under Eddie Jones.
England forward Maro Itoje is the youngest member of the squad at 22.
Ross Moriarty, impressive at number eight for Wales in the Six Nations, was a surprise addition, as was Ireland's New Zealand-born utility back Jared Payne.
In the squad there are 16 Englishmen, 12 from Wales, 11 Irish and two Scots - fullback Stuart Hogg and winger Tommy Seymour. Scotland have not had a Lions test starter since prop Tom Smith in 2001.
"There's been healthy debate about the squad and now that it's been announced we need to get it behind it 100 per cent and get excited about travelling to New Zealand," Gatland told reporters.
Read the full article on eurosport.co.uk: Warburton to captain Lions on New Zealand tour