The Cardiff Blues back-row, only the second man to lead the Lions on two tours after England great Martin Johnson in 1997 and 2001 got the honour this year despite standing down as Wales captain prior to the Six Nations in a bid to regain his best form.
Hartley, who recently led the English to a record-equaling 18 straight test wins, became the third England captain in succession to miss out on Lions selection, after Steve Borthwick in 2009 and Chris Robshsaw in 2013.
Full back Stuart Hogg, who was a guaranteed selection, is joined in the squad by only winger Tommy Seymour for the tour, while two teams Scotland beat in the Six Nations, Wales and Ireland, will bring a combined 23 players to New Zealand.
Warburton, who has won 74 Wales caps and led his country in two World Cup campaigns, is now injured.
The All Blacks coach was clearly prepared to put the pressure on the visitors with his comments and wasn't shy on his opinion of what style of rugby the world champions will face come the first Test on June 24 - and he doesn't think it will be too expansive. "We had a good discussion about the midfield and I said to the rest of the coaches was that we can't leave Jonathan Joseph out", Gatland said. Gats would have okayed the idea - I'm sure they would have spoken to him about what sort of itinerary the Lions would need. "I was in a supermarket vehicle park and didn't believe him at first".
Gatland, once more on secondment from his role as Wales coach, has again appointed Sam Warburton, the Lions captain in Australia, as his skipper.
Meanwhile, Sam Warburton will join England World Cup victor Martin Johnson as a record two-time Lions captain this summer.
"We believe that Sam's experience and leadership qualities make him an obvious choice as captain".
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Munster will supply scrum-half Conor Murray and back rowers Peter O'Mahony and CJ Stander, while Ulster provide the same in Ireland captain and hooker Rory Best, lock Iain Henderson and centre/full-back Jared Payne.
But despite England having the largest contingent of players in the squad, Launchbury missed out.
Saracens director of rugby Mark McCall said the club are proud to have six of their players selected for the summer tour.
Gatland has selected several players from that match and England's 38-21 win over the All Blacks in 2012 for the upcoming tour to New Zealand.
"There's competition for places and there will be players fighting for Test spots with no clear No.1, No.2 or No.3 in certain positions".
'That was when it hit home how big a deal it is and this time against New Zealand is arguably the toughest tour'.
The Lions take on the All Blacks for the first time since 2005, with three Test matches scheduled across June and July.
"In previous tours the midweek games tended to be a little easier, but when you look at the quality of the opposition we're facing in midweek (which includes all five New Zealand Super Rugby franchises) it's going to be hugely challenging", said Gatland.
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