India suffered a huge jolt ahead of their Champions Trophy opener against Pakistan on September 26 when star batsman Yuvraj Singh fractured a finger on his right hand and was ruled out of the tournament.
The stylish left-hander has been advised six weeks' rest and will return home immediately.
Delhi middle order batsman Virat Kohli has been named Yuvraj's replacement.
"Yuvraj Singh has fractured a finger in his right hand and has been ruled out for six weeks. The selectors have chosen Virat Kohli as replacement for Yuvraj Singh," the Board of Control for Cricket in India said.
"He will fly out as soon as formalities are completed," it added.
Yuvraj sustained the fracture during a fielding session at the University ground in Johannesburg.
Yuvraj was enthusiastically taking part in the fielding session, but ended up hurting his right finger so badly that he couldn't participate in the batting and bowling sessions later in the day.
He was checked by physio Nitin Patel before proceeding for a medical examination which revealed a fractured finger.
India are already an injury-hit side, going into the tournament without the services of star opener Virender Sehwag, who is nursing a shoulder problem.
Sehwag's fellow-opener Gautam Gambhir, who was nursing a groin strain ahead of the tournament, did not play in the team's only practice match against New Zealand.
Pacer Zaheer Khan is also missing from action due to an injury.