Head coach Lancaster has given George Ford another chance at fly-half after the 21-year-old made an encouraging first start in the victory over Samoa at last weekend.
Farrell was moved to centre for that triumph in order to accommodate Ford, but the Saracens man has dropped to the bench for Saturday's encounter with the Wallabies as Billy Twelvetrees comes into the side.
Lancaster was impressed by the manner in which Farrell reacted to be left out and has no doubt that the 23-year-old will force his way back into his side.
"Owen will play a different role off the bench this week - at 10 or 12," said Lancaster. "We know we can use him in both positions.
"He accepted it well. He's a great professional and he's very team-focused. He accepted that George had played well and that he's not on top form.
"He will contribute from the bench and then go away and work hard with Saracens. I'm sure he will be back."
Dylan Hartley and Tom Wood were also recalled to the England starting line-up at the expense of Rob Webber and James Haskell.
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