Olise has been hampered with injuries throughout this season and has been restricted to just 11 top-flight outings, although he has contributed with six goals and three assists.
The 22-year-old has not played for the Eagles since February 3 when he picked up a recurrence of a troublesome hamstring problem just 11 minutes into a 4-1 defeat at Brighton & Hove Albion.
Olise has since missed the last seven Premier League games, and his absence has been felt by Palace, who have only won once during this period - a 3-0 home victory over Burnley on February 24.
Glasner has not been able to call upon Olise since he replaced Roy Hodgson as manager almost two months ago, but the Austrian has now provided a positive update on the winger's fitness ahead of this weekend's clash with title-chasing Man City.
Olise in contention to play against Man City
Providing a fitness update of his squad at a press conference on Friday, Glasner confirmed that Olise is set to begin as a substitute on Saturday ahead of making a cameo appearance in the latter stages of the second half.
"All the players who were in the squad in the last games are fit again. Michael is coming back into the squad," Glasner told reporters.
"We spoke to the medical team and the advice is for 15 or 20 minutes. He is ready and it gives us one more option towards the end of the game so we are happy."
Although Palace have just eight Premier League games remaining this season, Glasner has insisted that Olise will need time to get back to his best.
"We didn't train a lot this week because it's the third game now, but of course [Olise] has shown his individual quality in possession," Glasner added. "His dribbling, his finishing is great.
"But he was out now for eight weeks and for the fourth time this season, so he was more in rehab than on the pitch. We will give him the time to find his best performance, to get his quality back.
"Everyone needs rhythm, everyone needs minutes, needs training. He is now starting [to get that] so I don't expect him at the best level after eight or nine weeks of injury, but he can play 15 or 20 minutes.
"If it is still a tight game at the end, then maybe he can have one or two decisive situations to decide the game against us."
Meanwhile, Glasner has revealed that defensive duo Marc Guehi and Chris Richards are not yet ready to return as they continue to recover from knee injuries.
"[Marc] is not training with the team at the minute. I would say he will be at least two or three weeks," said the Eagles boss.
"We will look from day to day (for Richards) - one day it looks better and then the next day not so. But I think he will miss at least the Liverpool game (April 14) and then we will see. He will be out for two or three weeks."
Palace are also having to cope without Sam Johnstone (elbow), Cheick Doucoure (Achilles), Rob Holding (foot), Jesurun Rak-Sakyi (thigh) and Matheus Franca (groin) due to injury.
The Eagles, who lost 1-0 at Bournemouth on Tuesday, currently sit 14th in the Premier League table, eight points clear of the bottom three with a game in hand on 18th-placed Luton Town.