The 27-year-old was injured in a collision during his side's Barclays Premier League match against Tottenham yesterday and was withdrawn after feeling discomfort in his back this morning.
He will be replaced by Bordeaux's Benoit Tremoulinas.
A statement on the French Football Federation's website, www.fff.fr, read: "After discussion between the doctors of Manchester City and the France national team, Didier Deschamps has accepted the withdrawal of the Manchester City defender.
"The coach has called up Bordeaux's Benoit Tremoulinas to join the group of players called up to play against Italy in Parma."
Tremoulinas, 26, was called into the squad for the 2010 friendly against Norway - when former club manager and then-France boss Laurent Blanc axed the entire squad from that summer's World Cup.
But he did not take the field on that occasion and is in line to win his first cap this week.