The 35-year-old has competed in five Solheim Cups as a player and made the winning putt at Dalmahoy in Scotland to secure Europe's first victory in the championship, in 1992.
Nilsmark has twice won on the Ladies European Tour and once on the LPGA Tour, the 1999 Valley of the Stars Championship.
Europe will try to defend the trophy next month at Interlachen Country Club in Edina, Minn. They won in 2000 in Scotland.
Both teams agreed last season to stage the Solheim Cup in odd-numbered years after the 2001 Ryder Cup was postponed until this year following the September 11 attacks on the United States.
America leads Europe by four Solheim Cup victories to two.