Daniher,afterrequesting a trade to Sydney in the off-season,wasn't voted back into the leadership group.
A senior club figure said the appointments were down to a player vote on who should lead and did not mean those players could not,nor would not,return to titled leadership positions in the future.
Reinforcing this point was the fact Hurley returned to the leadership group this year after being left out in 2019.
Hurley said Merrett would be able to use the upcoming season as an opportunity to reflect on his own leadership style.
"I think my leadership grew throughout the year. I saw things slightly differently,became a bit of a conduit between the players that were in the leadership group and some of the younger players,"Hurley said.
"I think Zach will find ways to grow,he's a smart young guy."
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Hurley admitted he experienced a"mixture of emotions"last year,but denied it was a mistake to leave players such as he and Cale Hooker out of the leadership group.
The two-time All-Australian defender said he was excited and honoured to be re-joining the group in 2020.
"Last year we had a process,we followed that and the group came out last year what it was,"Hurley said.
"The process changed slightly differently this year and the group's changed. It might be different next year,you don't know,but I think the group is who we got now and it's really exciting."
Senior coach John Worsfold and,this year,coach-in-waiting Ben Rutten as well as chief executive Xavier Campbell had input in leadership selections,but the players cast the deciding vote.
Essendon have said Daniher is progressing well from his late-season surgery and is now pain-free and for the first time in a long time,running and training freely.
He underwent surgery in Sydney with the doctor who treated Lance Franklin,the key forward who would have become a teammate had Daniher got his wish at the end of last year to be traded to the Swans.
Daniher has sincetwice flown to Ireland as part of his recovery to be treated by a physio recommended there.
He is not yet back in full training with the main group but his progress is now about building up running and physical conditioning. He is unlikely to be ready for the start of the season but the club is bullish about his return to the field.
Hurley added that Daniher continued to show"promising signs"as recently as Monday in his groin rehabilitation.
"Big Joey trotted out and started doing some 100s,so that was really pleasing. He's shed a bit of weight,looking fit and strong again so hopefully we'll see him out there a bit more,"he said.
Dyson Heppell will captain Essendon for the fourth consecutive year. No vice-captains have been nominated.
Dylan Shiel and Devon Smith have both also joined the group along with David Zaharakis. David Myers,who was in the leadership group last year,retired at the end of last season.
Hurley said Shiel and Smith had made a massive impact in a short period of time at the club and he was hopeful Smith would be able to recapture his 2018 form which saw him win a best-and-fairest.
"The way he's been training,he looks fit,he looks strong,you wouldn't know that he’s had knee surgery last year,"Hurley said.