Bardsley picked up an injury while on loan at US side OL Reign and has now been replaced in the 18-player squad by Telford.
Everton’s Sandy MacIver is on the reserve list, but Team GB women’s football head coach Hege Riise opted for Telford to be Bardsley’s direct replacement due to her experience.
The Chelsea goalkeeper is well used to tournament football, having helped England reach the semi-finals of the 2019 FIFA Women’s World Cup – a feat which secured GB Football their spot at the Tokyo 2020 Olympic Games next month.
Telford said: “This is an amazing honour, although I really feel for KB and send her all my best wishes for her speedy recovery.
“The goalkeepers’ union is not a cliché - although we are competing to play we always want each other to do well. I am so disappointed for her but of course tremendously proud to get the chance to play at an Olympic Games. It is an incredible honour and I will give it all I can.”
Riise added: “We are very fortunate to be able to call on a goalkeeper of Carly’s pedigree. Losing Karen was a blow of course but her selection was always a close-call with Carly, given they both have such strong reputations.
“Carly is a leader and she will be a big asset for us and what we are hoping to achieve.”