Tuilagi was withdrawn from the bench on the eve of the stirring 12-11 victory over South Africa after sustaining the injury during training at the squad's Portugal camp.
Tuilagi has been blighted by injury and last played for England two-and-a-half years ago but is fit to play this weekend.
"Manu is back and progressing well - we're cautiously optimistic he'll be available this week", England's Australian coach Eddie Jones said.
"Seeing him in your team settles the boys down knowing he is there".
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"You need game-breakers don't you?"
Tuilagi will forever be remembered for his dazzling display in the 38-21 triumph over the All Blacks at Twickenham in 2012.
'One thing about the All Blacks is that you are going to have to score tries.
Some England players may doubt how well known they are to their Kiwi opponents, but Youngs is only too aware of the damage the world champions can cause. "It is about going out there and really taking the game to them".
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However, defeat for the visitors ended their chances of progressing from the group. "It's not good, but we are not complaining".
"He's a fantastic young player and we saw that in the game time he had against South Africa at the weekend".
When England produced a heroic defensive performance to defeat New Zealand 15-13 in Wellington in 2003 they were described in the local media as a "tribe of white orcs on steroids", with a pack that "intimidated and unsettled".
"Our belief is very good", he added.
He kept his place for last Saturday's match against the Springboks but looked in a good deal of pain when limping off two minutes into the second half. "I'm sure if he's given the opportunity that he would be able to certainly give us a lot of go-forward and be a key cog to this team. I think everyone's been looking forward to the game".
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"We want to make sure that we give the best account of ourselves and how that is, is making sure we get our game-plan clarity absolute right and then we're able to execute on Saturday".