Gurney is set to undergo a shoulder operation next month.
With Gurney’s unavailability, KKR now have two overseas pacers in their ranks in the form of Pat Cummins and Lockie Ferguson.
Gurney, who has played 10 ODIs and 2 T20Is for England, is set to undergo a shoulder operation next month.
The left-armer confirmed to ESPNCricinfo that he has withdrawn his name from IPL 2020. His absence means that KKR's 23-man squad now features only 7 foreign players. However, a replacement for the Englishman is expected to be announced soon.
KKR had roped in Gurney for 75 lakh at the IPL 2019 auction. He represented the franchise in eight games last season, claiming seven wickets.
Moreover, the 33-year-old Gurney won’t turn out for Nottinghamshire in this year’s T20 Blast competition as well.
"Having gone through the same frustrations as everyone this year in waiting for cricket to restart, I'm devastated to have to miss the Blast," ESPNCricinfo quoted Gurney as saying. "Some of the proudest moments in my career have been with Notts, and nothing quite compares to being out on the field at Trent Bridge competing for trophies with some of my best mates. To have that taken away for a year is tough."
Nottinghamshire head coach Peter Moores admitted that losing Gurney was a setback.
"Harry would improve any T20 side in the world, so it's a blow to lose him for this year's tournament," Moores said. "With the experience and expertise he's gained from a global white-ball career, he's become a real leader in our limited-overs dressing room."