It comes as North Queensland captain Jason Taumalolo prepares to return from two months out with a knee injury.
Marzhew's omission comes after Enari Tuala and Bradman Best were dropped for the same reason late last season, also after an away game against the Broncos.
Ironically, Tuala will replace Marzhew in the side to face the Sydney Roosters on Saturday, making his second NRL appearance of the season.Â
"Greg missed the team bus early on Sunday morning, which is a clear breach of team standards and as a result he will not play this weekend," said Knights football boss Peter Parr.
Matterson has been shifted to five-eighth as the Eels hope their fourth unique halves pairing in five games can hoist them into the top eight for the first time this year.
With Mitch Moses away on State of Origin duty and Dylan Brown stood down, the Eels' depth was always going to be in for a significant test, especially after back-up half Jake Arthur was released to join Manly last month.
Matterson began his career as a five-eighth but has not started as one regularly at NRL level, last lining up in the halves in May 2019.
But the Eels have no other specialist halves on their books with their only other option seemingly to switch Clint Gutherson out of fullback.
The match will be Matterson's first since recovering from the calf injury he suffered against South Sydney a month ago.
Matterson will partner five-eighth Daejarn Asi in the halves against Manly, when the Eels have the chance to climb as high as seventh on the ladder and put their hot-and-cold start to the season behind them once and for all.
The Eels also welcome mid-season recruit Joe Ofahengaue back from a calf injury while Manly are preparing to give Arthur his first start at halfback with Daly Cherry-Evans away on Origin duty.
James Tedesco misses the struggling Roosters' clash with Newcastle through Origin, pushing Joey Manu to fullback and rookie Sandon Smith to the halves.
With four players leaving for Origin duty, the Cowboys are bolstered by Taumalolo's return for the clash with reigning premiers Penrith and have recalled Kyle Feldt after Todd Payten dropped the veteran winger for their last game.
Wests Tigers have resisted the urge to recall out-of-favour Daine Laurie following a hamstring injury to Luke Brooks, instead switching centre Starford To'a to the halves for Saturday's clash against Melbourne.
Reports have linked out-of-favour Laurie with a move away from the joint venture so a call-up to replace Brooks would have loomed as the perfect audition for a new NRL gig.
