Mr. Lee, who is known as the founding father of modern Singapore, passed away at the age of 91 on Monday.
Initially, there were doubts about whether the match would be played as the country is still in mourning.
"We are awaiting confirmation from the authorities on whether Thursday's friendly international match between the Singapore and Thailand in Korat, Thailand, will proceed as planned," the Football Association of Singapore (FAS) said in a statement earlier in the week.
However, sources have told ESPN FC that the match will take place and that both teams will observe a minute's silence prior to the kick-off.
In addition, Singapore will wear black armbands during the match.
The FAS also paid tribute to Mr. Lee's contributions to the sport as he opened the iconic Singapore National Stadium in 1973.
"Mr Lee's leadership of Singapore has enabled our country to grow, progress and prosper, and this, in turn, has led Singaporeans being able to pursue many different career options, including that of being professional athletes and footballers," the FAS said.
Meanwhile, it has also been confirmed that Singapore's international friendly against Guam on March 30 will proceed as planned.