Louloudis hasn't competed all season because of the problem but will stroke the boat on Dorney Lake as Britain looks to end the recent domination of Germany in the event.
Louloudis, who rowed for Oxford in its victory in the University Boat Race in 2011, says on Wednesday “I'm delighted to have been selected after such a long period of doubt.”
The host team will compete in 13 of the 14 events and is favorite to top rowing's medals table.