Jose Mourinho has made a surprise move by recalling the Portuguese defender to his starting line-up and picking the former Bayern utility man at full-back against the Catalans
The Portuguese centre-half has been missing with back and knee injuries for several months, and was not expected to take part in the fourth Clasico of the season.
Carvalho's return means Pepe will be used in a defensive midfield role, with Sergio Ramos continuing at the centre of defence.
Hamit Altintop comes into the team at right-back while Fabio Coentrao is chosen ahead of Marcelo on the opposite flank as both Gonzalo Higuain and Karim Benzema start the game together.
There are no surprises in the Barcelona side who name their strongest XI possible with Lionel Messi, Cesc Fabregas and Alexis Sanchez forming their infamous three-pronged attack.
Real Madrid (4-3-3): Casillas; Altintop, Carvalho, Ramos, Coentrao; Pepe, Xabi Alonso, Diarra; Ronaldo, Benzema, Higuain
Subs: Adán, Kaka, Ozil, Granero, Marcelo, Albiol, Callejón .
Barcelona (4-3-3): Pinto; Alves, Pique, Puyol, Abidal; Xavi, Busquets, Iniesta; Messi, Fabregas, Sanchez
Subs: Valdes, Mascherano, Thiago, Adriano, Sergi Roberto, Dos Santos, Cuenca