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New Zealand captain Kane Williamson has full faith in new opening batsman Tom Blundell, who will play the third Test of his career on Boxing Day.

New Zealand have settled on a line-up for their first Boxing Day Test at the MCG in 32 years.

While Australia will wait to decide on their XI, the Kiwis have confirmed two changes to the side that was smashed by 296 runs in Perth.

New Zealand captain Kane Williamson on Wednesday confirmed Tom Blundell will replace struggling opener Jeet Raval at the top of the order.

As expected, ace quick Trent Boult returns from a rib injury, with fellow fast bowler Lockie Ferguson making way.

The left-armer was sorely missed in Perth, with Boult's 17 wickets in Australian conditions the sixth most by a Kiwi bowler.

After crumbling against the pink-ball in the first Test of the series, Williamson said there was no better way to bounce back than in Melbourne.

The Kiwis' last Boxing Day Test back in 1987 resulted in a famous draw.

A crowd of about 75,000 is expected for day one.

"There's a sense of romance about being involved in the Boxing Day Test," Williamson told reporters on Wednesday.

"I know we always play cricket on Boxing Day, but I think there's only one Boxing Day Test and it's the one over here.

"At the same time, it's sort of removing a little bit of that (hype) and bringing the focus back to the cricket.

"Perth was tough and Australia were very good and tactically sound. It's important we learn from some bits of Perth."

Williamson labelled Blundell a "smart" and "positive" player capable of rising to the occasion.

Blundell played the last of his two Tests in December 2017 and batted at No.8.

"It's important you adapt to the conditions in front of you and important he goes out and looks to play his natural game," Williamson said.