But Leeds chief executive Gary Hetherington has warned it could be the last played in England for some time.
Hetherington said Super League champions Leeds would have been prepared to travel to Australia.
He said: "It turned out to be too short a time scale for 2012 but it's very much on the agenda for the future."
The game will be played on Friday, 17 February.
NRL Grand Final winners Manly had proposed a Middle Eastern venue.
Hetherington told a press conference at Headingley: "Whilst there has been talk about [playing outside England] for the last eight or nine years, it's never really got far.
The fact we were prepared to play in Australia probably took the Australians by surprise
"But just recently there does seem to be an appetite, particularly from the Australian clubs, to start to explore that possibility.
"I think the fact that we were prepared to play the game in Australia probably took the Australians by surprise and it made the NRL think seriously about staging it.
"A lot of preparatory work could be done. Indeed, if it was to be in Dubai or the Emirates, work could start now for 2013."
The Rhinos have managed to secure home advantage after playing their four previous fixtures at Elland Road, home of Leeds United.
Huddersfield's Galpharm Stadium, which hosted three Challenges featuring Bradford Bulls, was considered because of its undersoil heating but Hetherington is confident Headingley can be protected against frost.
"We desperately want to win the game and if our crowd and our home stadium gives us that edge we'll certainly take it," added Hetherington.
"Whatever the weather can throw up, we'll make sure the pitch is fit. We now have a lot of technology and we won't have a game here for two weeks prior to that game."
With Headingley's capacity currently set at 20,000, the crowd will be well down on the Rhinos' previous Club Challenge matches at Elland Road. Leeds' meeting with Manly in 2009, which the Aussies won 28-20, was watched by 32,569.
Last year saw St George Illawarra beat Wigan 21-15 at the DW Stadium.

Milk will replace sugar as the treat's main ingredient, as the white stuff content is boosted from 26%  to 37.5%.
Nestle said the new recipe bars - with sugar cut by 0.7g - will be in stores by the end of the month.
It follows a similar move with its KitKat recipe, which increased the milk and cocoa content.
The Milkybar recipe has been the same since the bar first came into production in 1936, but is being changed as part of Public Health England's drive to reduce the amount of sugar consumed in the UK by 20%.
In April Nestle reduced the amount of sugar in its fruit pastilles by 30%.
A spokesman said the reductions in sugar would make "a positive step overall to removing sugar from the nation's diet while maintaining the taste"

The work - which began in August 2014 - has now been completed.
More specialist contractors were brought in as the work progressed and the budget began to rise.
A council spokeswoman told BBC Scotland the last agreed budget was just under £4.3m but that the final bill for the project was still being calculated.
She said: "We can confirm that the restoration of the roof of the Town House, one of Aberdeen's historic civic buildings, is now complete.
"The scaffolding erected on Union Street came down over the weekend as the repairs came to a close.
"In the past two years the project has revealed many ornate and historic features which are unique to the UK.
"As the work progressed the scope was widened to account for additional structural issues which were previously not evident in initial assessments and which led to the schedule and budget being extended.
"This included the exposure of rotten wood in the building's four towers which were found underneath the slates and lead last summer that had to be replaced."
The spokeswoman added: "We made a commitment to bring this important civic building back to life and are delighted the project has now come to a close.
"The final cost of the project is still to be confirmed."
The 2012 World Club Challenge between English champions Leeds Rhinos and Australian champions Manly Sea Eagles will be played at Headingley.
[NEXT_CONCEPT]
Milkybars are about to get milkier, as the recipe changes for the first time in 81 years.
[NEXT_CONCEPT]
The final bill for repairs to the clock tower at Aberdeen's Town House could end up at more than £4.3m, it has been revealed.