Nweke injured her knee in the Ferns’ pool match against Singapore on Sunday night, with the team's medical staff confirming yesterday that scans revealed a partial tear in her patella tendon.
Travelling reserve Tiana Metuarau has been called into the playing 12 for the remainder of the tournament.
Silver Ferns head coach Dame Noeline Taurua said it was a gutting blow for both Grace and the team.
"Obviously we are hugely disappointed for Grace, who was competing at her first Netball World Cup. She provides a unique skill set for our team and will be massively missed," she said.
"The positive is that being able to carry travelling reserves to this Netball World Cup means we are able to bring Tiana in, who has been training with us throughout our build-up and is familiar with our structures and the players around her.
"This is not a scenario we were wanting, but we are as prepared for it as we can be and move on to the next stage of the Netball World Cup and our match against Wales."
New Zealand moved into the second group stage after beating Singapore 80-19 on Sunday and topping Pool D unbeaten.
The 61-goal victory was marred by Nweke limping off after only eight minutes of game time in the third quarter.
The Mystics shooter spent the rest of the match on the sideline with ice strapped around her leg.
Nweke’s exit left New Zealand’s attack misfiring, before finishing strongly in the fourth quarter when Te Paea Selby-Rickit returned to goal shoot.
The Silver Ferns were due to take on Wales in their first crossover match last night ahead of a rest day before meeting South Africa and Jamaica.
The Welsh Feathers are supported by Southern Steel coach Reinga Bloxham.
The 48-year-old has been brought in as a defensive specialist for the World Cup.
— Staff reporter with Additional reporting by The New Zealand Herald
