The prolific France striker missed Real's 3-0 victory in the first leg of the last-16 tie last week with a knee injury.
Mbappe has scored 38 goals in 33 appearances for the club this season, and news of his return is a blow for City ahead of the return clash at Etihad Stadium on Tuesday (Wednesday AEDT).
At his pre-match press conference in Manchester, head coach Alvaro Arbeloa confirmed Mbappe was ready to play.
"I cannot wait to see him back on the pitch, to enjoy watching him play, to score the goals he scores. Of course he'll be important (on Tuesday)," Arbeloa said.
England midfielder Jude Bellingham has also travelled with the Real squad as he steps up his recovery from a hamstring problem, but is not ready to feature.
Erling Haaland could be key to City's hopes of turning the tie around, and Real defender Antonio Rudiger is relishing another contest with the Norway forward, with the pair having become familiar foes in recent years.
"Players like Haaland, it's a huge pleasure to play against this type of player," Rudiger said.
"I like the physical battle, I want it and need it, the same as him. I'm looking forward to it.
"He's a world-class striker, very strong, and I like these type of duels."
Rudiger acknowledged his combative approach as he addressed recent claims from Getafe defender Diego Rico about his conduct.
Rico said Rudiger committed an "assault" against him in a challenge this month.
"In slow motion it looks terrible, but in the action itself and also what the player said, it was like I almost killed him," Rudiger said.
"He doesn't need to exaggerate because if I'd had the intention to do that he wouldn't have stood up.
"I don't justify it, but the way he spoke after the game was like I killed him, but he was running afterwards. We all know I like to be tough on the pitch, but I still have boundaries. I am a human being."
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