The ex-Marseille man has not featured at all in qualification for this summer's tournament with his last international appearance coming in August 2010 - shortly before he broke his leg playing for the Magpies against Manchester City.
France play England in the first game of their group fixtures that includes Ukraine and Sweden.
Blanc told Eurosport: "We have monitored him and can count on him for the knockout stages of the Euro.
"Sadly after a dispute with Marseille, when I told him to be calm, he left for Newcastle where he suffered a terrible injury.
"I have watched him play again and watched him recuperating at Clairefontaine (national academy); he took some time to come back but his talent was always there and always will be, and he has shown more maturity this season."
Ben Arfa is joined on the list by seven other English-based players, including club-mate Yohan Cabaye and Manchester City pair Samir Nasri and Gael Clichy.
Centre-halves Laurent Koscielny (Arsenal) and Younes Kaboul (Tottenham), Manchester United full-back Patrice Evra and Chelsea winger Florent Malouda are also among those called up.