The 40-year-old has had a rollercoaster season at Bayern Munich, keeping just six Bundesliga clean sheets and conceding 20 goals in 22 games.
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Neuer had originally retired from international football in 2024, but Nagelsmann has now convinced him to return for the 2026 World Cup.
Speaking to Sky Sport after the Germany squad announcement, Nagelsmann has now confirmed Neuer will be his first choice.
"Yes, I am planning for him. Everyone knows what kind of aura surrounds Manu. The decision is, in my eyes, the right one," he said.
This is a major blow for Hoffenheim's Oliver Baumann who had expected to be Germany’s number one before Neuer’s return.