The Spain international dropped to the bench for a 2-1 victory over Valencia last time out, but has replaced James Rodriguez in Zinedine Zidane's front three alongside Cristiano Ronaldo and Karim Benzema.
Raphael Varane also comes back in after nursing his way to full fitness following a hamstring complaint.
Atletico, meanwhile, will be looking to their front pairing of Antoine Griezmann and Kevin Gameiro to do the damage at Santiago Bernabeu.
Real Madrid team: Navas; Carvajal, Ramos, Varane, Marcelo; Casemiro, Kroos, Modric; Isco, Ronaldo, Benzema. Subs: Kiko Casilla, Nacho, James, Kovacic, Lucas, Asensio, Moratta.
Atletico Madrid team: Oblak; Savic, Lucas, Godin, Luis; Gabi, Saul, Koke, Carrasco; Griezmann, Gameiro. Subs: Moya, Alberto Rodriguez, Tiago, Partey, Gaitan, Torres, Correa.