The centre-back has been missing for close to two months but is set to return to action in time to feature in the derby
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The Spain defender last featured for Madrid in the 2-2 Champions League draw with Borussia Dortmund on September 27.
But he has seemingly recovered in time to feature against Atletico, taking part in Monday's training session without any noteworthy issues and handing coach Zinedine Zidane a timely boost.
Fellow defender Pepe has a hamstring problem and is still training away from the rest of the squad, as are Karim Benzema and Casemiro as they continue their recovery process, while Mateo Kovacic and Toni Kroos took part in indoor sessions.
Zidane's men head into the derby top of LaLiga, two points clear of Barcelona, with Atletico trailing by six points in fourth place.