In a statement issued by the NHL club Thursday, Sedin said he's physically unable to play for Sweden at the Games.
"I'm disappointed not to be physically able to represent my country at the Winter Olympic Games," Sedin said. "This is a difficult decision but ultimately the best decision for me personally, Team Sweden and the Vancouver Canucks.
"I wish my teammates the best and look forward to returning to play."
The statement came prior to the Canucks' game Thursday night against the Montreal Canadiens and said Sedin would be made available to reporters after the contest.
The announcement comes after Canucks coach John Tortorella said he was shutting Sedin down for Vancouver's final two NHL games before the Olympic break.
Sedin returned for two contest with Vancouver after missing six with bruised ribs.
Sedin has nine goals and 40 points in 52 games this season.