The 28-year-old, capped 61 times, has been replaced at No. 8 in the starting XV by Taine Plumtree with uncapped Morgan Morse called up as a replacement for Saturday's match.
Wales have lost their last 33 matches against New Zealand with their last victory coming back in 1953.
Wales line-up
Blair Murray; Louis Rees-Zammit, Max Llewellyn, Joe Hawkins, Tom Rogers; Dan Edwards, Tomos Williams; Taine Plumtree, Harri Deaves, Alex Mann; Dafydd Jenkins, Adam Beard; Keiron Assiratti, Dewi Lake (capt), Rhys Carre
Replacements: Brodie Coghlan, Gareth Thomas, Archie Griffin, Freddie Thomas, Morgan Morse, Kieran Hardy, Jarrod Evans, Nick Tompkins