North, 20, suffered the injury in training on Tuesday and his Scarlets colleague Liam Williams will take his slot on the left wing against the All Blacks.
North has scored 11 tries in his 25 Tests for Wales, and is one of the main attacking threats for the Six Nations champions, who are looking to get back on track after starting their autumn campaign with demoralising defeats to Argentina and Samoa.
Williams, who won his one and only Wales cap to date against the Barbarians in June, has impressed for the Scarlets so far this season, but in his preferred position of full-back.
A Welsh Rugby Union statement read: "Wales wing George North has been replaced in the starting line-up for this Saturday's Dove Men Series clash with New Zealand at the Millennium Stadium by fellow Scarlet Liam Williams."
North has not been ruled out of Wales' final autumn engagement against Australia a week on Saturday, and will remain in camp to undergo treatment on his injury.
But his absence against the world champions is the latest cruel injury blow to hit Wales.
Adam Jones, Dan Lydiate, Alun Wyn Jones and Josh Turnbull have all been ruled out of the autumn series, while Richard Hibbard, Dan Biggar and Ian Evans were all unavailable this week after picking up injuries in the defeat to Samoa.
Centre Jonathan Davies missed the games against the Pumas and Samoans with a groin injury but is available to face the world champions, while hooker Matthew Rees also returns after a calf problem.
Wales have not beaten New Zealand since 1953 and have suffered 24 consecutive defeats against the All Blacks.
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