Ferrero joins David Ferrer, Tommy Robredo and Marcel Granollers in the four-man team for the March 5-7 first-round tie on clay at the bull ring in Logrono, Costa said on the Spanish tennis federation website (www.rfet.es).
Ferrer is the only survivor from the side who beat Czech Republic in last year's final in Barcelona, with world number three Rafael Nadal and number 10 Fernando Verdasco unavailable due to injury and number 34 Feliciano Lopez left out.
"It's a great team, very competitive, which is going to be fighting to win this tie," Costa told a news conference.
"As always, it's tough, very difficult, and we need all the players to give 100 percent."
The Spanish have dominated the Davis Cup over the past decade, also winning in 2000, 2004 and 2008, and are undefeated in 18 home ties stretching back to April 1999 when they lost 3-2 to Brazil in Lerida.
Swiss world number one Roger Federer has said he is unavailable as he is reluctant to play on clay immediately before the hardcourt events in Indian Wells and Miami.
(Reporting by Iain Rogers; Editing by Clare Fallon)