Overton, the Somerset seamer, made his Test debut during the 2017-18 Ashes series, dismissing Steven Smith to take his first England wicket, and most recently played in the defeat at Auckland in 2018.
He won selection ahead of Woakes and allrounder Sam Curran.
Woakes has taken nine wickets at 29.00 in the series, but has struggled for control, leaking 3.34 runs per over, and has bowled fewer overs per innings than the rest of England's seamers.
Overton has taken 32 wickets at 21.34 this season in the County Championship, but has only played one first-class match in the past six weeks, with the T20 Blast dominating the county fixture list.
Overton averages 21.74 in first-class cricket, with one century and nine 50s to his name, and is expected to bat at No. 8, ahead of Jofra Archer, in Manchester.
England team for fourth Test: 1 Rory Burns, 2 Joe Denly, 3 Joe Root (captain), 4 Jason Roy, 5 Ben Stokes, 6 Jonny Bairstow (wk), 7 Jos Buttler, 8 Craig Overton, 9 Jofra Archer, 10 Stuart Broad, 11 Jack Leach