The 25 year-old back-row man missed the clash with Leeds after picking up an injury in the win over London Irish two weeks previously.
Commenting ahead of the weekend's key Premiership clash Melville said: "Adam has trained well, so we'll have him back for Sale on Friday."
After a stop and start opening month to the season Balding hit top form and made the number eight shirt his own, which led to him taking on the captain's role in the team.
"He has been a talisman for us and has played well, demonstrating good leadership when he has been in charge."
Elsewhere in the back-row James Forrester has received treatment for a knock picked up during last weekend's fixture with Leeds, and could still make the line-up for the visit to the Sharks.
Other players who missed the defeat to the Tykes include Andy Hazell (head) and Terry Fanolua (back). The Samoan midfielder is still having difficulties with his back, and Hazell will be assessed later in the week.
Melville's player availability continues to be hit, with Marcel Garvey the latest on the list. "Marcel damaged his elbow against Leeds and we've got to wait and see how it looks later in the week."
Prop Phil Vickery, who broke his arm against Bath in February, will have to wait until the Saracens home game at the end of April (30 April) before looking at getting back in to contention.
"The bone in Phil's arm still needs more recovery time, and he won't be involved on Friday night," said Melville.
Both Duncan McRae and Mefin Davies came through unscathed against Leeds, and Andy Gomarsall returned to the team as a second half replacement.
Gomarsall, who has signed for Worcester for next season, could come into the reckoning for the number nine shirt for Friday's game along with Alex Page.
Gloucester will want to put last Saturday's defeat at home to Leeds behind them and focus on the tough trip to Sale on Friday, with their defensive duties top of the agenda.
Other players who will be unavailable for the Sharks fixture are Chris Fortey (ankle), Mark Cornwell (neck) and James Parkes (wrist) and Henry Paul (knee).