The fixture on Saturday, 4 August, is expected to attract thousands of Palestinian fans who rarely see live international soccer.
The stadium lies on the Palestinian side of Israel’s apartheid separation barrier, which at that point is a concrete wall.
The Iraqi delegation are paying their first visit to the Palestinian territories. They crossed into the Israeli-occupied West Bank from Jordan.
The Iraqi national team coach, Basim Qasim, told a pre-match news conference: "This meeting certainly proves the brotherhood and bond between the two Arab nations - Iraqi and Palestinian - and I feel our presence is more important than the result."
Qasim added: "We are carrying out our obligation to be here with our brothers here in Palestine."