Carter, the standout fly-half in world rugby, missed the 33-10 victory over Six Nations champions Wales in Cardiff but was named in the starting line-up to face England by coach Steve Hansen on Thursday. Deputy Aaron Cruden drops to the bench.
The World Cup-winning All Blacks, undefeated in 20 Tests, swatted aside the Welsh with ease on Saturday and with Carter returning to the side a similar result is expected at Twickenham against a stuttering England.
England have not beaten the All Blacks since 2003 but New Zealand coach Hansen is wary of the opposition, who have suffered narrow losses to South Africa and Australia in consecutive weeks.
"There is huge motivation within the team to finish the season off on a high and real excitement ahead of this weekend, with a packed house at Twickenham always a great occasion," Hansen said.
"We know that the English will lift themselves for their final match of the year, especially following their two recent narrow defeats (to South Africa and Australia) and we need to be prepared to match them in all facets."
England's traditional strength has been the power of their pack and Hansen made two changes to his forwards on Thursday to combat the threat.
Brodie Retallick was preferred in the second row over Luke Romano, who scored a try in the win over Wales, while Keven Mealamu was named at hooker in place of Andrew Hore, who was banned for five weeks for striking Welsh lock Bradley Davies on Saturday.
"He has a couple of games off the bench and he has got a big motor and goes all day long and we just think that this game will suit him," Hansen told New Zealand media of the switch of locks.
"They (England) are big men and they are probably one of the biggest packs that we will come up against.
"They will bring a physical, combative game, there is no question about where they are going to come. They will have one-off runners and two runners round the corner so they are going to come straight at you."
Mealamu, Carter and prop Tony Woodcock had all been injury concerns for Saturday but Hansen said they were ready.
"They got through training the other day and we are comfortable to name them at this stage," the coach said.
Hansen also said that all but two members of the squad had suffered from diarrhoea and vomiting during the week, although did not expect it would lead to players being unable to take the field on Saturday.
"I am feeling a lot better today but I know the guys had a good guided tour of their bathrooms yesterday," number eight Kieran Read was quoted as saying in the New Zealand Herald.
"I think it is a 24-hour thing. It is just something we have to handle."
Captain Richie McCaw will start his 116th Test and lead the vastly experienced side for the 79th time.
England team: 15-Alex Goode, 14-Chris Ashton, 13-Manu Tuilagi, 12-Brad Barritt, 11-Mike Brown, 10-Owen Farrell, 9-Ben Youngs; 8-Ben Morgan, 7-Chris Robshaw (captain), 6-Tom Wood, 5-Geoff Parling, 4-Joe Launchbury, 3-Dan Cole, 2-Tom Youngs, 1-Alex Corbisiero.
Replacements: 16-David Paice, 17-Dave Wilson, 18-Mako Vunipola, 19-Courntey Lawes, 20-James Haskell, 21-Danny Care, 22-Freddie Burns, 23-Jonathan Joseph.
New Zealand team: 15-Israel Dagg, 14-Cory Jane, 13-Conrad Smith, 12-Ma'a Nonu, 11-Julian Savea, 10-Dan Carter, 9-Aaron Smith, 8-Kieran Read, 7-Richie McCaw (captain), 6-Liam Messam, 5-Sam Whitelock, 4-Brodie Retallick, 3-Owen Franks, 2-Keven Mealamu, 1-Tony Woodcock.
Replacements: 16-Dane Coles, 17-Wyatt Crockett, 18-Charlie Faumuina, 19-Luke Romano, 20-Victor Vito, 21-Piri Weepu, 22-Aaron Cruden, 23-Ben Smith.