Froome has not raced since he finished the Tour de France in 133rd place, having scrapped plans to ride the Vuelta a España, which began on Saturday.
The seven-time Grand Tour winner is continuing his recovery from his career-threatening 2019 crash and will take his season up to Il Lombardia on October 9.
At the Deutschland Tour, which begins next Thursday, August 26, Froome will line up alongside Andre Greipel, Patrick Bevin, Rick Zabel, Alex Dowsett, and Reto Hollenstein.
The line-up is heavily geared to the largely flat route in Germany, which has seen a number of sprinters on the start list issued by the race organisers.
Cavendish is the most high-profile of them, having won four stages at the recent Tour de France in what has been a remarkable comeback season.
He was winless on his recent return to racing at the Denmark Tour but will be out to try and bag a victory in Germany that would take him to double figures for the season for the first time since 2015.
Cavendish will be led out by Shane Archbold, while recent Tour de Pologne winner João Almeida is also in the squad, along with Yves Lampaert, Rémi Cavagna and Jannik Steimle.
Cavendish and Greipel will face competition from Pascal Ackermann (Bora-Hansgrohe), who has won five times in the past six weeks but at lower-level races.
The German team are bringing much of their home talent, with Nils Politt, Emanuel Buchmann, Marcus Burghardt, Rudiger Selig, and Michael Schwarzmann all featuring in the all-German line-up.
Phil Bauhaus (Bahrain Victorious) is another home sprinter, who won a stage of the Tour de Pologne, while Alexander Kristoff lines up for UAE Team Emirates, Kristoffer Halvorsen sprints for Uno-X and John Degenkolb represents a German national squad.
Australia's Ben O'Connor (AG2R Citroën) makes his return to racing in Germany after finishing fourth at the Tour de France. Other riders in the GC mould include Davide Formolo (UAE Team Emirates), Pello Bilbao (Bahrain Victorious), and Matteo Jorgenson (Movistar).
The Deutschland Tour begins on August 26 in Stralsund and finishes in Nurnberg on August 29, with four road stages that are largely flat but feature plenty of rolling terrain.
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