The Scot had hoped to kick off his grass court campaign at the East Midlands tournament which starts on Saturday.
Murray was planning to use the second-tier Challenger Tour event to tune up for Queen’s Club and then Wimbledon.
However, he has now taken the decision to pull out but it is understood that he still plans to play at Queen’s where he is a record five-time champion.
Murray, 34, pulled out of the French Open last month after suffering from discomfort during the ATP Masters event in Rome where he played doubles and trained with singles players, including Novak Djokovic.
Before he travelled to Italy Murray described the series of injury setbacks he has suffered since his hip resurfacing surgery in 2019 as “hard to take”.
A groin injury was the main issue but it is not clear what is behind the latest setback.