The 2018 edition champion Sindhu had sustained the injury on way to her title winning run at the Commonwealth Games in August.
The BWF World Tour Finals is scheduled to be held in Guangzhou, China from December 14.
“Her doctor has advised her to take some more time so that she recovers completely ahead of the new season. She has discussed about the pros and cons but with so much restrictions in Guangzhou and also keeping new season in mind, she has taken this decision,” Sindhu’s father PV Ramana told PTI.
“She has already started her training a couple of weeks back and by January she will be fully fit. So in view of all these reasons, she sent a mail to BAI informing about her decision.
“She will need to be at her best for next year which will have Asian Games and also the 2024 Paris Olympics qualification, playing about 22 tournaments will be tough, so she is taking extra care.”
Sindhu’s withdrawal means HS Prannoy remains the only representative from India at the prestigious tournament.
While Prannoy is ranked third in the Race to Guangzhou ranking, Kidambi Srikanth too has an outside chance if he does well at the Australian Open super 300 beginning in Sydney on Tuesday.
Lakshya Sen had also withdrawn from the Australia event due to a throat infection.
COVID-19 cases have been rising in Guangzhou, forcing authorities to go for stricter restrictions.