Rome
The tournament has 132,000 euros ($160,000) in prize money.
Murray tested positive for COVID-19 shortly before he was due to board a charter flight to Melbourne, where he had been given a wild-card entry.
Murray is a former No. 1 who is currently ranked 123rd as he works his way back from hip issues that led to two operations.
He last played a challenger event in August 2019 in Mallorca, Spain, while recovering from his hip problems.
Also entered for the Biella tournament are 54th-ranked Alejandro Davidovich Fokina, who also tested positive for COVID-19 before his planned trip to Australia, No. 74 Lucas Pouille, Sebastian Korda, Andreas Seppi and Lorenzo Musetti.
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