Daley, who has won the last two Commonwealth Games titles, will still compete in the 10m synchro competition with Dan Goodfellow on Friday, but he and the England backroom team agreed that the impact of doing the individual event would be too much for his body.
Daley said: “I am truly devastated not to be competing in the individual event.
“I have been training so hard for the Commonwealth Games, so this is a real disappointment for me.
“The hardest thing for any athlete is coping with an injury, especially when it means they can’t compete in what they have been working towards.
“I continue training for the 10m synchronized diving event alongside Dan.”
Daley won the men’s platform titles in both Glasgow and Delhi, but his withdraw will open the door for other athletes.
Plymouth’s Matthew Dixon and Aidan Heslop will both compete in the men’s 10m individual event.
Dixon, who will also take part in the 10m synchro competition, is representing England, while Heslop, who is also entered for the three-metre event, will represent Wales.
The diving events at the Gold Coast start on Wednesday and run through Saturday, which is when the men’s 10m event will take place.