The last team to have eight All-Stars was the 2001 Seattle Mariners. Before that, no club had eight All-Stars since the 1960 Pittsburgh Pirates.
Hudson is on the 15-day disabled list with a strained left oblique muscle.
Yankees manager Joe Torre, who will manage the AL All-Stars, said the roster opening was offered first to Boston ace Pedro Martinez, who declined the invitation.
"He had made other plans, I guess," Torre said. "I didn't make the decision. We went with the list and Vazquez was next on the list after Pedro passed."
It will be Vazquez's first trip to the All-Star game. He is 9-5 with a 3.50 ERA in his first year with the Yankees after being acquired from Montreal in a trade last offseason.
He joins New York teammates Jason Giambi, Derek Jeter, Alex Rodriguez, Mariano Rivera, Tom Gordon, Gary Sheffield and Hideki Matsui on the AL team. Giambi, Jeter and Rodriguez were elected by fans to starting infield spots.
Lo Duca earns his second NL All-Star appearance after also being selected last season. He entered Thursday hitting .308 with six homers and 35 RBIs.
"It's exciting to go back and to be in the same clubhouse with those guys," Lo Duca said. "There's a lot of guys who are more deserving and probably should have gone (before) me, but I'm still happy to go."