The 30-year-old had hoped to be involved against the Pumas in Wellington despite struggling with the injury all week, but it became clear today that he would have to sit out the match.
All Blacks coach Steve Hansen said: "Dan has been carrying a tight left calf this week, but had been hopeful of playing.
"However, at training this morning it was apparent he would not be able to play. We have done the sensible thing and withdrawn him from the team."
Aaron Cruden will now start in the number 10 jersey for his 13th Test appearance, with Beauden Barrett - who had been practising with the side this week - moving into the reserves.
New Zealand team: Israel Dagg; Cory Jane, Conrad Smith, Ma'a Nonu, Julian Savea; Aaron Cruden, Aaron Smith; Tony Woodcock, Keven Mealamu, Owen Franks, Luke Romano, Brodie Retallick, Victor Vito, Richie McCaw (capt), Kieran Read.
Reserves: Andrew Hore, Charlie Faumuina, Samuel Whitelock, Liam Messam, Piri Weepu, Beauden Barrett, Ben Smith.
Gilbert has released a new line of rugby cleats. The Gilbert Virtuo 8S is part of the exciting new product. Check it out.
The entire All Blacks apparel line has been updated for 2013/14. Check out the New Zealand All Blacks polo.
The Nike Tiempo is a solid rugby cleat and one of few styles still made from full-grain natural leather.
The Gilbert Blitz 8S rugby cleat is a great cleat at a great price of $69.99. Get a new pair of cleats today.
A cool looking all black rugby cleat with the high performance adidas is known for. Get in the Gear!
Wear the crest of the British and Irish Lions on your t-shirt. A great look for the summer.
$29.99
The All Blacks Performance t-shirt is black with hints of blue from the training jersey. Very Cool.
The New Zealand All Blacks training jersey for 2013/14. Get in the Gear!
The USA Rugby Pro Alternate rugby jersey is perfect for any fan of the Eagles. Get yours to wear during the summer Test matches.
The NEW All Blacks 2013/14 jersey has arrived at World Rugby Shop. Dare to wear the colors of the All Blacks.