The England international comes in on the wing in place of Mark Foster, who moves to the bench in one of three changes to the 22 named by head coach Dean Ryan.
Balshaw, who has made eight appearances in all competitions this season, scored the decisive try in Gloucester's 15-3 victory over London Irish on Monday to end a two-match Guinness Premiership losing sequence and push them back into a play-off place.
There is one other change to the starting XV and that sees Nick Wood come in at loosehead prop in place of Christian Califano, who also switches to the bench. The other change comes in the replacements where Jonathan Pendlebury replaces Adam Eustace.
"We won a particularly important game on Monday in impossible conditions and it was great for us to come away from that experience with the knowledge we can win those tight matches in unfavourable elements," Ryan told www.gloucesterrugby.co.uk
"In games like that you need to pick up wins and it will be of massive benefit to us later in the season. We have again selected a team we feel appropriate for this weekend's game against the current Premiership champions.
"We have only just started what is a very intense month of activity for ourselves and although we appreciate Sale have suffered horrendously with injuries it will be a hugely tough game.
"But it is something we relish and are excited about the challenge this weekend."
Apart from Scotland scrum-half Rory Lawson, the remainder of the backline is English and Lawson will again be partnered by Ryan Lamb at half-back.
Mike Tindall and Anthony Allen will continue their developing centre combination, while James Simpson-Daniel, Balshaw and Olly Morgan are the back three.
Up front, Wood's inclusion is the only change. He will make his 10th Premiership appearance of the season - eight of them starts - and be partnered by hooker Mefin Davies and prop Carlos Nieto.
Gloucester will be skippered by Italian lock Marco Bortolami in the second row alongside Alex Brown and the pack is completed with by English feel with Peter Buxton, Andy Hazell and James Forrester in the back row.
There is also plenty of experience on the bench with Olivier Azam and Califano the front row replacements, Pendlebury, Jake Boer, Peter Richards, Willie Walker and Foster completing the options.
GLOUCESTER (v Sale Sharks, tomorrow 5.45pm): Olly Morgan; James Simpson-Daniel, Mike Tindall, Anthony Allen, Iain Balshaw; Ryan Lamb, Rory Lawson; Nick Wood, Mefin Davies, Carlos Nieto, Marco Bortolami (capt), Alex Brown, Peter Buxton, Andy Hazell, James Forrester. Reps: Olivier Azam, Christian Califano, Jonathan Pendlebury, Jake Boer, Peter Richards, Willie Walker, Mark Foster.
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