The 25-year-old, who claimed high jump bronze at London 2012, had been set to compete at the Gateshead International Stadium only to withdraw with him suffering with a knee problem.
Grabarz's place in the team is taken by Tom Parsons but this is not the only change to head coach Peter Eriksson's squad.
London Olympic pole vaulter Steve Lewis will sit out the competition and will undergo treatment on a shin injury, his place being taken by Andrew Sutcliffe.
Liz McColgan, the 1988 Olympic 10,000m silver medallist, has pulled out with a calf injury and is replaced by Lennie Waite while Izzy Jeffs has taken Freya Jones' spot in the javelin with the latter choosing to stay in America.
Eriksson said: "Whilst it is disappointing to lose some great athletes from the team, with every disappointment comes an opportunity.
"Tom (Parsons) is showing a great return to form and it is good to see him back competing for Great Britain, whilst Andrew (Sutcliffe) is also looking good.
"It is also a good opportunity for Lennie and Izzy to make their mark at this level in front of the home crowd and I am happy that the athletes stepping in can bring home the points needed to have a successful weekend."