The two-time Grand Slam champion will compete in the clay-court event, which runs from April 22 to May 5, live on Sky Sports.
Halep’s four-year suspension was reduced to nine months on appeal and the Romanian made her comeback at the Miami Open in March, losing to Paula Badosa in the opening round.
The 32-year-old won the Madrid Open back-to-back in 2016 and 2017 and was also a beaten finalist in 2019, losing to Kiki Bertens.
Writing on social media platform X, Halep said: “Muchas gracias Madrid Open for this wild card opportunity.
“Madrid has always been a special tournament for me, with happy memories and I’m grateful to be able to make more. See you soon.”
Halep will be joined at the Madrid Open by fellow wild card Caroline Wozniacki, with the latter now back on the WTA Tour after having two children.
In the men’s draw, 2014 US Open finalist Kei Nishikori and Spanish teenager Martin Landaluce have been awarded wild cards.
Carlos Alcaraz has won the previous two men’s singles titles in Madrid, defeating Alexander Zverev in 2022 and Jan-Lennard Struff in 2023.
Aryna Sabalenka is the reigning women’s singles champion, beating current world No 1 Iga Swiatek in last year’s final.
Sky Sports will broadcast more live tennis than anywhere else, bringing over 4,000 matches from more than 80 tournaments a year on the ATP and WTA Tours, as well as full coverage of the US Open, all exclusively live.
