Lara, along with team-mates Chris Gayle and Dwayne Bravo, was given the go-ahead by team management which was originally hesitant to let all three play because of the potential injury risk on the squad of 14 players.
The West Indians are here to play in a triangular one-day series against Australia and Pakistan in January and February.
But a West Indies team spokesman said on Monday coach Bennett King and manager Tony Howard had agreed to batsmen Lara and Gayle and allrounder Bravo playing in the Melbourne Cricket Ground charity match.
Lara will join Australians Ricky Ponting, Adam Gilchrist, Shane Warne, Glenn McGrath and Matthew Hayden among others in the world team, chosen by former Australian captain Steve Waugh and New Zealand Test great Richard Hadlee.
The West Indies are likely to take a full-strength side into their first warm-up match, a day-night game against Victoria at the MCG on Wednesday.
The West Indies play Victoria, then play Australia A in two one-day matches in Hobart (January 8 and 9) before taking on Australia in the first match of the triangular one-day series, on January 14 at the MCG.