The world No.2 struggled through Wimbledon with the problem, losing in the quarter-finals to Sam Querrey, but his prospects for Flushing Meadows had looked positive when he travelled to NY last weekend.
However, Murray admitted on Saturday that "time had run out" and confirmed discussions will now be held to decide his options for the remainder of the year.
"Did pretty much everything that I could to get myself ready here and took a number of weeks off after Wimbledon", Murray said. Tried, obviously, resting, rehabbing, to try to get myself ready here.
"Was actually practicing okay the last few days, but it's too sore for me to win the tournament and ultimately that's what I was here to try and do".
"So, unfortunately, I won't be playing".
He now joins the list of high profile absentees at the US Open this year - Novak Djokovic, Stanislas Wawrinka, Kei Nishikori and Milos Raonic.
He said: "I'll definitely make a decision on that in the next few days".
He continued: "I certainly wouldn't have been hurting myself more by trying to play".
'But I'll decide on that in the next couple of days, for sure.
Murray's withdrawal means that five of the 11 best tennis players in the world are missing from the final Grand Slam of the season. Fifth-seeded Marin Cilic moves into Murray's position and will face American Tennys Sandgren, while American Sam Querrey, previously the No. 17 seed, moves into Cilic's spot. And Roger Federer, who is still entered, is dealing with a bad back.
"There has been a lot of players with injuries this year".
'I want to come back as soon as I can, ' he said.
Because the draw was already formulated by the time Murray withdrew, only some reshuffling was done.
The lucky loser is Lukas Lacko (that nearly rhymes).