The 25-year-old midfielder is the highest profile player to be cut from the provisional squad as the list of 23 is unveiled
The midfielder has been on loan at Newell's Old Boys from Valencia and the Argentina coach has deemed him surplus to requirements as he prepares for the tournament in Brazil.
Argentina heads into the summer showpiece as one of the favorites and the South Americans have a whole host of high-profile players in the shape of Lionel Messi, Sergio Aguero, Gonzalo Higuain, Javier Mascherano and Pablo Zabaleta.
Sabella's team has been drawn in Group F alongside Iran, Nigeria and Bosnia and Herzegovina, against whom it begins the World Cup on June 15 in Rio de Janeiro.
Goalkeepers: Sergio Romero (Sampdoria), Mariano Andujar (Catania), Agustin Orion (Boca Juniors)
Defenders: Pablo Zabaleta (Manchester City), Federico Fernandez (Napoli), Ezequiel Garay (Benfica), Marcos Rojo (Sporting Lisbon), Hugo Campagnaro (Inter Milan), Martin Demichelis (Manchester City), Jose Basanta (Monterrey)
Midfielders: Javier Mascherano (Barcelona), Fernando Gago (Boca Juniors), Lucas Biglia (Lazio), Ricardo Alvarez (Inter Milan), Augusto Fernandez (Celta Vigo), Angel Di Maria (Real Madrid), Maxi Rodriguez (Newell's Old Boys), Enzo Perez (Benfica)
Forwards: Lionel Messi (Barcelona), Gonzalo Higuain (Napoli), Sergio Aguero (Manchester City), Rodrigo Palacio (Inter Milan), Ezequiel Lavezzi (Paris St Germain)