McDonald has not played since injuring his hamstring against Carlton in round 11. He will now line-up against Collingwood at Victoria Park in the VFL seniors on Sunday - the same day Melbourne will host the Sydney Swans at the MCG.
Bailey said the 33-year-old was part of the decision-making process, in regards to his return via the Scorpions.
“After lengthy discussions with the match committee and after lengthy discussions with the medical team, it was decided with James that a game back at Casey would allow him to gain confidence in his hamstring,” Bailey told melbournefc.com.au.
“So when he does come back [to the AFL] it won’t be a mental hindrance.”
The 2006/07 dual Melbourne club champion winner is now just four matches shy of reaching the 250-game milestone.
This will be McDonald’s first match for Casey.