The fast bowler is suffering from a left heel injury, with Black Caps coach Mike Hesson receiving the all clear from the ICC to call up Matt Henry as a replacement.
Milne felt discomfort following New Zealand’s quarter-final victory over West Indies on Saturday and a scan showed significant swelling around the heel.
Milne, who bowled Chris Gayle for 61 during the quarter-final victory, has taken five wickets for 199 in the tournament.
Henry, meanwhile, has only played eight ODIs but has impressive career figures of 21 wickets at an average of 15.42.
However, coach Hesson was giving nothing away about who would be promoted to the starting XI. Milne had been an automatic choice as the third quick bowler behind Tim Southee and Trent Boult.
Hesson said on Monday: “Once we get to the ground we’ll look at whoever is available in the squad and we’ll look at the wicket again and we’ll pick what we deem to be the best squad.???
The match is taking place on the same ground where New Zealand edged past tournament favourites Australia by one wicket.
Skipper Brendon McCullum added: “The way we have operated with Adam in that third seamer role has worked quite well for us coming in after our two opening bowlers swinging the ball.
“That doesn’t mean we have to roll out the same game plan or same strategy but it has served us well over the last little while.
“We probably need to have another look at the wicket, look at the overhead conditions as well and try and factor all of those things in.”