Former Soccersouth director Clarke Walker said it was the first time a team from New Zealand had been invited to the tournament, and it was a huge honour.
"This is a fantastic opportunity for these young 15-year-olds to get international experience at a very prestigious tournament," Walker said.
Teams from Australia, Thailand, Japan, India, Brunei, Malaysia, Qatar and Singapore will be competing.
Walker said it was vitally important the team "make their mark".
If the team can achieve credibility it could secure a return visit to Singapore as well as invitations to other tournaments in the Asian region.
Secondary school coaches have been asked to help identify the best players in the region. The team will assemble for an initial meeting on June 30.
Walker sees Otago's participation in the cup as an opportunity to build a solid group of players which would form the core of a future under-17 Milk Cup team.
"The nucleus of this squad will go on to Northern Ireland and play in the Milk Cup and also use it as a stepping stone to any career they might have in football."
