The Green Knight appears unexpectedly before his foes, bursting from within the bole of the most ancient trees, or galloping furiously from still lakes or rushing waterfalls.
Source: Warhammer: The Old World Online Rules Index
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The Green Knight is not placed on the battlefield during deployment – he slumbers until he is awakened during the game. During any of your Start of Turn sub-phases in which the Green Knight is not on the battlefield (even if he was removed from play as a casualty during a previous turn), you may attempt to awaken him by rolling a D6. On a roll of 1-2, he continues to slumber until your next turn at least. On a roll of 3+, the Green Knight awakens. If the Green Knight has not yet been awakened by the start of round five, he awakens automatically.
When the Green Knight awakens, he may be placed completely within any 'natural' terrain feature anywhere on the battlefield. For the purposes of this rule, a 'natural' terrain feature includes any woods, or any difficult or dangerous terrain. It does not include any constructions, such as walls or buildings. Before the game starts, the players should agree upon which terrain features are natural and which are not.
In addition, rather than moving normally during the Remaining Moves sub-phase, if the Green Knight is completely within a natural terrain feature and is not engaged in combat, you may remove him from the battlefield and replace him so that he is completely within a different natural terrain feature anywhere on the battlefield. The Green Knight cannot move again during this Movement phase.
Note that when the Green Knight appears within a natural terrain feature, he must abide by the 1" rule. In other words, the Green Knight cannot be placed within 1" of an enemy unit.