The Portugal International was considered doubtful for the match, after sustaining an ankle injury in Madrid's away win against Dinamo Zagreb in the mid week Champions League..
Ronaldo was on the receiving end of a number of heavy challenges in Madrid's win and required stitches on his ankle after the game.
His Manager Jose Mourinho would pick the forward for the Primera Division encounter in Valencia only if he was fit to play, and it has now been confirmed that the 26-year-old has recovered from his knock.
Midfielder Kaka is back in the squad after overcoming a muscle strain that forced him to miss the game in Zagreb on Wednesday.
Madrid are currently three points back of leaders Valencia in fourth place in the table and one behind bitter rivals Barcelona.