Ultimate Ninja 4: Naruto Shippuden

No, Shippuden Sasuke isn't in the game. Ultimate Ninja 4 is weird, because the story starts out before episode 1, when Naruto is doing some special training with Jiriaya. Then half-way through story mode, Naruto returns to the village, and then you play through (about, not entirely sure) episodes 1-17. At the end of this episode, I think Team Gai just finished fighting their clones, and they opened up the Akatsuki lair. That is where story mode should end. Anyways, to answer your original question, here are all the characters Shippuden that are in the game.

Naruto

One Tailed Naruto (a transformation to Shippuden Naruto, like the transformation to Naruto in Ultimate Ninja 3, who by the way, will also be appearing in the game, along with all of the other Ultimate Ninja 3 characters and transformations.)

Sakura

Kakashi

Shikumaru

Temari

Kankuro (forgive me if I mis-spelled his name.)

Gaara

Rock Lee

Neji

TenTen

Maito Gai (Might Guy in English)

Itachi

Kisame

Sasori

Deidara

Chiyo

I hope this helps!