The Finn, who won this year's Rally of Sweden, fell heavily during training and had to have seven metal screws inserted into his shoulder in an operation on Thursday.
"Cross-country skiing is part of his regular training programme and he's a good and accomplished skier," a Ford team spokesperson told the world rally championship website.
"Unfortunately he suffered a heavy fall and has been withdrawn from Rally Argentina to give himself the best possible opportunity to be fit for the Acropolis Rally at the end of May."
The 27-year-old Latvala is sixth in the overall standings with 28 points, trailing world champion Sebastien Loeb of France who leads the way on 66.
Ford team director Malcolm Wilson said no decision on a Rally of Argentina replacement for Latvala would be announced until Monday at the earliest.
The all-gravel rally is scheduled for April 27-29.