Ruddy, 25, earned his first international call-up when his fine season in the Premier League was recognised with a place in Roy Hodgson's 23-man squad to travel to Poland and Ukraine.
However, the goalkeeper broke his finger during a training session on Thursday and will now take no part in the competition.
An FA statement read: "Ruddy was assessed by the England medical staff and will not be able to be part of the tournament. He will travel with the squad to Norway on Friday and watch the game on Saturday evening, but return to his club after arriving back in England."
England have called up Birmingham City's Jack Butland, who was previously named on the country's standby list.
Butland, who spent last season on loan with Cheltenham in League Two, will link up with the England squad after Saturday's friendly against Norway.
The 19-year-old will then be present when England face Belgium in their final warm-up game on June 2.