The 14-time Major champion has not competed since being forced to withdraw from the Dubai Desert Classic in February because of back spasms, but he had been attempting to make a return to Augusta on the 20-year anniversary of his first Green Jacket.
However, the American announced on Friday that he would continue his rehabilitation programme in an attempt to play again on the PGA Tour later in 2017.
On his official website, the 41-year-old said: "Unfortunately, I won't be competing in this year's Masters. I did about everything I could to play, but my back rehabilitation didn't allow me the time to get tournament ready.
"I'm especially upset because it's a special anniversary for me that's filled with a lot of great memories. I can't believe it's been 20 years since I won my first green jacket.
"I have no timetable for my return, but I will continue my diligent effort to recover, and want to get back out there as soon as possible."
Woods currently sits at 757th in the World Golf Rankings.