The 30-year-old was set to make his first appearance of this year's Championship after recovering from a similar injury.
He was named in the starting line-up earlier on Thursday, but was withdrawn having undergone scans after training.
Joe Marchant has been recalled and will train with the team on Friday.
England have said they will confirm the updated team to face Wales on the day of the match.
Before Tuilagi's injury, it was announced that Harry Randall will start at scrum-half, while fit-again Courtney Lawes was named as captain.