Will and his partner Janette Manrara were missing from the BBC favourite on Saturday after he suffered a fall in reheasals.
Bosses originally granted the Paralympic table tennis player a pass to next week, but yesterday the broadcaster confirmed his withdrawal.
"We are so sad that Will is unable to continue on the show," said executive producer Sarah James.
"He is an incredible and talented person who has brought us some unforgettable moments this series.
"He will be greatly missed and we wish him a speedy recovery."
Will's sudden exit had fans wondering whether another celebrity would step in to take his place.
Some called for Catherine Tyldesley to return after she controversially left over Mike Bushell on Sunday.
However, it seems the show will now carry on as usual with the remaining nine couples.
A Strictly insider told The Sun that it is now "too late in the process" to introduce a brand new contestant.
Instead, only three couples will now reach the grand final, for the first time since 2016.
Reinstation of eliminated celebs like Catherine would be highly unlikely, as paid public votes were involved in their departures.
The news came after Will told the newspaper that his injury could prevent him participating in the Tokyo 2020 Paralympics next year.
"If I have to miss Tokyo it would be devastating. I’m at the top of my career," he said.
"This is just massively scary to have this injury at this moment. It’s only just starting to sink in."
Will's exit has made the latest series of Strictly the first ever to involve multiple contestant withdrawals.
Made In Chelsea star Jamie Laing was originally part of the line-up, but he pulled out due to a foot injury.
Chiefs drafted Emmerdale actor Kelvin Fletcher in as his replacement before the first live show.