The 30-time Tour de France stage winner will be joined by compatriots Steve Cummings and Scott Thwaites.
Cavendish, 32, recently returned to racing after three months out with glandular fever.
"If I am being totally honest, had this not been the Tour de France we may have collectively taken a different approach with regards to my inclusion," he said.
"But I feel that I owe it to myself, the team, our sponsors and most importantly to the Tour itself given its history and everything that it stands for - as well as the emotional attachment I have for it - to give it my best and to put everything I have into trying to help the team."
The Tour de France starts on Saturday 1 July, with Team Sky's Chris Froome, of Britain, aiming for a third straight race victory, and fourth overall.
Mark Cavendish is one of three Britons who will be racing for Team Dimension Data at the Tour de France.