The Magpies were forced into making at least one change for the season decider after the MCL sprain to tall forward Daniel McStay, while midfielder Taylor Adams won't be available for a return from a recent hamstring issue.
A number of fringe Collingwood players who haven't been part of their perfect September run were set to press their case for a recall this week, with Frampton to rival the likes of Nathan Kreuger, Reef McInnes and John Noble for McStay's spot.
On Wednesday, McRae confirmed to SEN that Frampton will come into his 22-man side as a forward inclusion.
McRae said the former Power and Crows player's versatility will be of great value at the MCG against the Lions.
"I'm comfortable to say to the footy world that Billy Frampton will play," McRae said on The Run Home. "We're really excited with what he can do for us.
"He can play forward, he can play back on someone like (Joe) Daniher, and can be a second ruck option.
"There was a genuine hug and excitement (when he found out)."
The 2023 Grand Final will be Frampton's first final of his career, which began at Alberton in 2108.
McRae revealed he is yet to decide on his tactical sub, with Noble a chance to come into the 23 over recent sub, Jack Ginnivan.
Both sides will confirm their lineups at 6:20pm (AEST) on Thursday.