The 20-year-old has been training with the first team since Setien took over from Ernesto Valverde on Monday and is in contention as Frenkie de Jong misses out through suspension following his red card in the 2-2 draw away to Espanyol earlier in January.
Also in midfield, Arthur Melo is back in the frame following a spell on the sidelines with a pubis problem, but the Brazilian might not be ready to start just yet.
Youngster Ansu Fati is set to feature in attack as Luis Suarez is sidelined with a knee issue.
The Uruguayan underwent an operation last Sunday and will be out for four months, meaning he will miss most of the remainder of the season.
That is likely to see Antoine Griezmann switch to a central role on Sunday, with Fati on the left and Lionel Messi on the right.
Setien could also consider a three-man defence, but may be reluctant to make any radical changes to the formation at this early stage.
Marc-Andre ter Stegen is available again after missing the Spanish Supercopa in Saudi Arabia with tendinitis and should replace Neto in goal.
Barcelona possible XI (4-3-3): Ter Stegen; Sergi Roberto, Pique, Lenglet, Alba; Busquets, Puig, Rakitic; Messi, Griezmann, Fati
Granada possible XI (3-4-3): Silva; Sanchez, Duarte, Martinez; Diaz, Herrera, Gonalons, Neva; Puertas, Soldado, Machis