Both the 26-year-old and Chelsea team-mate John Terry suffered injuries during the Three Lions' 1-0 victory over Belgium on Saturday, but the latter has been given the all-clear after a scan on Sunday revealed a hamstring strain was not as serious as first feared.
Liverpool full-back Martin Kelly has been called up as Cahill's replacement, although that has still to be cleared by Uefa's medical team.
An FA statement read: "Gary Cahill has been withdrawn from England’s Euro 2012 squad following the injury he suffered in the match against Belgium. The Chelsea defender has two fractures of his jaw, one either side. The England medical team have been in close contact overnight with Cahill’s club doctors who will treat him moving forward.
"Liverpool defender Martin Kelly will be called into the squad – subject to agreement from Uefa’s medical team. Kelly trained with the England players last week and was part of the group that travelled to Norway.
"John Terry has been scanned this morning and given the all clear. He will be re-assessed on Tuesday when the team regroup." Cahill was injured in the first half of England's last friendly before Euro 2012 when he was deliberately pushed into Hart by Belgium midfielder Dries Mertens. This latest withdrawl adds to a disastrous week for manager Roy Hodgson, who has already lost the services of both Gareth Barry and Frank Lampard. Kelly's inclusion would make him the sixth Liverpool player to be included in England's squad.