The Leicester Tigers full-back missed the defeat by Wales last weekend after suffering an Achilles injury.
With Brian O'Driscoll unavailable due to his hamstring injury and Murphy returning to the side, there has been a reshuffle along the three-quarter line. Rob Kearney has reverted from full-back to the left wing and Tommy Bowe switches flanks to the right. Shane Horgan moves to inside centre and Andrew Trimble moves to the No.13 jersey to form a new centre partnership.
Ireland coach Eddie O'Sullivan has named Ronan O'Gara as captain for the first time.
Ireland team (v England, RBS 6 Nations Championship, Saturday, Twickenham, 3pm):
15 Geordan Murphy* (Leicester Tigers), 14 Tommy Bowe (Belfast Harlequins/Ulster), 13 Andrew Trimble (Ballymena/Ulster), 12 Shane Horgan (Boyne/Leinster), 11 Robert Kearney (UCD/Leinster), 10 Ronan O'Gara (Cork Constitution/Munster, captain), 9 Eoin Reddan (London Wasps); Marcus Horan (Shannon/Munster), 2 Rory Best (Belfast Harlequins/Ulster), 3 John Hayes (Bruff/Munster), 4 Donncha O'Callaghan (Cork Constitution/Munster), 5 Paul O'Connell (Young Munster/Munster), 6 Denis Leamy (Cork Constitution/Munster), 7 David Wallace (Garryowen/Munster), 8 Jamie Heaslip (Clontarf/Leinster)
Replacements: 16 Bernard Jackman (Clontarf/Leinster), 17 Tony Buckley (Shannon/Munster), 18 Mick O'Driscoll (Cork Constitution/Munster), 19 Simon Easterby (Llanelli Scarlets), 20 Peter Stringer (Shannon/Munster), 21 Paddy Wallace (Ballymena/Ulster), 22 Luke Fitzgerald (Blackrock College/Leinster)