Powell was entered in the 200 metres but was considering running against triple Olympic champion and fellow Jamaican Bolt in the 100, which would have put less stress on his groin.
"We decided this morning to withdraw Asafa from the 200 because his groin is sore and has a bit of tightness," Paul Doyle told Reuters. "We decided not to bother with the 100, since he was not ready for the 200."
Doyle described the injury as "nothing major."
Powell will now run in the opening Diamond League meeting in Doha on May 11.
"Rather than putting in a sub-par performance and risk aggravating the injury, we will sit out this meet wait until Doha for him to run," Doyle said.