A relay selection method is one of popular approaches to overcome fading effects in wireless relay channel due to its simplicity. However, previous works were concentrated on the case of analog network coding systems. In this paper, we consider a relay selection scheme in two-way relaying systems with physical network coding. Since conventional schemes based on analog network coding does not provide effective performance in physical network coded systems, we propose new selection criteria which maximize the minimum distance at the multiple access phase to achieve full diversity. Moreover, through asymptotic error rate analysis, it is confirmed that the proposed scheme is able to attain full diversity. Simulations results are also provided to verify the analysis of the proposed scheme.