Wade will join up with the squad in Sydney on Monday morning and travel to Canberra. He was due to win his second cap against Argentina having impressed on his full debut last weekend.
Lions Head Coach Warren Gatland said: "We have obviously got ongoing treatment of some players so it's prudent to make sure we have enough backline cover. Christian played well in the first test against Argentina and is match fit."
As a result of Wade's departure form Argentina, Jonny May (Gloucester Rugby) will win his first cap for England against Argentina in today’s second Test at Velez Sarsfield (20:10 BST)
England Head Coach Stuart Lancaster said: “We’re delighted for Christian. He’s been in excellent form, played really well on his Test debut against Argentina last weekend and he goes with the best wishes of all the England players and management.