Palais will face France, Australia and Spain while the PNG Pukpuks are pooled against South Africa, England and Spain.
The full match schedules for both the men's and women's HSBC Sydney Sevens 2018 have been released with 28 teams set to compete across three action-packed days on 26-28 January.
Fans will be treated to 79 matches as the Allianz Stadium plays host to Sydney's biggest festival of rugby across Australia Day weekend.
