Dagg will join fellow All Blacks and Crusaders teammate Daniel Carter on the sidelines in Christchurch after the first-five was ruled out earlier in the week by the hamstring strain which kept him out of the third test against Ireland in Hamilton.
Another casualty is likely to be No8 Kieran Read, who will sit out at least another week due to his concussion injury suffered in the second test in Christchurch.
Dagg had refused to rule himself out but will not be in the team when it is announced today.
The Hurricanes have also been hit by injuries to wing Cory Jane, who has an ankle problem, halfback TJ Perenara - still in Brisbane after an operation on his broken ankle - and All Blacks loose forward Victor Vito, who has a knee injury.
An obvious replacement for Dagg would have been Tasman fullback Tom Marshall, but a serious shoulder injury suffered in club rugby has ruled him out, and Sean Maitland could be drafted into the last line of defence. Tom Taylor or Tyler Bleyendaal are options at first-five, with either Richie McCaw or Luke Whitelock to wear Read's No8 jersey.
Dagg, who scored a try after spraining his ankle in the second half at Waikato Stadium, stayed on the field, but the joint remains painful. He will be a big loss to the Crusaders, who are second in the New Zealand conference and looking for maximum points to keep the pressure on the table-topping Chiefs.
While the Hurricanes will be boosted by the return of their new All Blacks, including wing Julian Savea, who scored a hat-trick on debut in the first test against Ireland, and first-five Beauden Barrett, outstanding as a replacement in Hamilton last weekend, the Crusaders welcome back lock Luke Romano, who also played well at Waikato Stadium.
Super Rugby action returns after a three-week break with tomorrow night's match between the Highlanders and Chiefs in Dunedin. The Highlanders will be at full-strength, with flanker James Haskell, who played for England in their 14-14 draw against the Springboks in Port Elizabeth in the weekend, available for the southerners.
Haskell tweeted on his arrival back in New Zealand on Tuesday: "Finally back in NZ this morning, after the longest flights and layovers ever. Not feeling fresh. Amazing experience with England, though."
Aaron Cruden, who aggravated an Achilles tendon injury in his short but scintillating appearance for the All Blacks in the weekend, will play for the Chiefs, who are boosted further by a flood of fellow in-form All Blacks in Sonny Bill Williams, Brodie Retallick, Sam Cane and Liam Messam.
Perhaps surprisingly, coach Dave Rennie has decided to leave openside flanker Cane on the reserves bench in favour of Tanerau Latimer.
The Highlanders will name their team today.
The Blues, last on the table, have a bye this weekend.
Chiefs team to play Highlanders at Forsyth Barr Stadium tomorrow (Friday), kick off 7.35pm: Robbie Robinson, Tim Nanai-Williams, Jackson Willison, Sonny Bill Williams, Asaeli Tikoirotuma, Aaron Cruden, Tawera Kerr-Barlow, Kane Thompson, Tanerau Latimer, Liam Messam, Brodie Retallick, Craig Clarke (c), Ben Tameifuna, Mahonri Schwalger, Toby Smith. Reserves: Hika Elliot, Sona Taumalolo, Michael Fitzgerald, Sam Cane, Brendon Leonard, Andrew Horrell, Lelia Masaga.
