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Reid's Spurs team-mate Terry Dixon, who caught Staunton's eye during the recent Under-17 Championships, is also included for his first taste of the senior set-up.
Shelbourne striker Jason Byrne also returns to the squad after winning his first and last cap against Poland in 2004.
Speaking at the announcement this afternoon, Staunton said he was looking forward to travelling to Portugal with the full squad.
He said: 'I have increased my squad size so that as many players as possible can experience how we operate and play together.
'The warm climate will be of benefit to us as well, but those named are delighted to be involved and buzzing. The most rewarding thing is there's a game at the end of it all, and the
entire squad will attend.'
The Republic of Ireland squad travel to Portugal on Friday, 19 May for a four day training camp.
They will then play Chile in Staunton's second match in charge at Lansdowne Road on Wednesday, 24 May at 7.30pm.
IRELAND SQUAD (v Chile and training camp in Portugal):
Shay Given Newcastle United
Paddy Kenny Sheffield United
Wayne Henderson Brighton & Hove Albion
Gary Breen Sunderland
Andy O'Brien Portsmouth
Richard Dunne Manchester City
Joey O'Brien Bolton Wanderers
Ian Harte Levante
Steve Finnan Liverpool
Liam Lawrence Sunderland
Stephen Kelly Tottenham Hotspur
John O'Shea Manchester United
Steven Reid Blackburn Rovers
Andy Reid Tottenham Hotspur
Graham Kavanagh Wigan Athletic
Jonathan Douglas Leeds United
Alan Lee Cardiff City
Alan Quinn Sheffield United
Michael Doyle Coventry City
Liam Miller Leeds United
Kevin Kilbane Everton
Damien Duff Chelsea
Stephen Elliott Sunderland
Kevin Doyle Reading
Aiden McGeady Celtic
Terry Dixon Tottenham Hotspur
Jason Byrne Shelbourne
Robbie Keane Tottenham Hotspur
Clinton Morrison Crystal Palace
http://www.rte.ie/sport/2006/0508/ireland.html