Palu was recalled to the national side for the Rugby Championship finale on Saturday but was eventually left out of the match-day squad.
It will be just the second time in six years the 33-year-old backrower has turned out for the Marlins.
Cheika is yet to make a decision on how many minutes Palu will be allowed to play, with another Bledisloe Cup match next week and the World Cup kicking off in a month’s time.
Manly coach Damian Cummins says Palu’s inclusion is a massive boost as the Marlins attempt to reach their first Shute Shield grand final since 1997.
“He’s a big unit with plenty of go forward and tons of experience at all levels," Cummins told Sportal.
“It will give everyone a lift having Cliffy join the side. It’s not every day one of the world’s best forwards is dropped on your doorstep.
“The boys were primed for a big effort anyway but this just adds another dimension.
“Credit to Michael Cheika and the Wallabies for letting these blokes play club rugby. Manly Oval should be bursting at the seams given all the talent on show from both sides.”
Last weekend fellow Wallabies backrower Michael Hooper was released to club football but sat out the match due to suspension.
Kurtley Beale lined up for Randwick in the same fixture last weekend as Cheika keeps his star players fit heading into the World Cup.