He will be replaced in the squad by Kasper Schmeichel, whose father Peter played a key role when Denmark won the European Championships in 1992.
Coach Morten Olsen said he could not afford to bring a goalkeeper carrying an injury to the tournament, where Denmark will face Netherlands, Germany and Portugal in the group stage.
"It's a tough decision I had to make, and it's a serious blow for us sportingly," Olsen said, adding that the uncapped Schmeichel will be adequate backup for Stephan Andersen and Anders Lindegaard.
"He [Schmeichel] has worked very seriously on his development as a goalkeeper, and we have followed him closely during the season at Leicester."
Sorensen was substituted in the first half of the 3-1 defeat by Brazil and was replaced by Andersen who is likely to start in Denmark's Group B opener against Netherlands on June 9.
Olsen, who named a preliminary squad on May 16, gave the final outfield places to Groningen striker Niclas Pedersen and 19-year-old central defender Jores Okore from new Danish champions FC Nordsjaelland.
Squad:
Goalkeepers: Stephan Andersen (Evian Thonon Gaillard), Anders Lindegaard (Manchester United), Kasper Schmeichel (Leicester City).
Defenders: Lars Jacobsen (FC Copenhagen), Simon Poulsen (AZ Alkmaar), Daniel Wass (Evian Thonon Gaillard), Simon Kjaer (AS Roma), Daniel Agger (Liverpool), Andreas Bjelland (FC Nordsjaelland), Jores Okore (FC Nordsjaelland).
Midfielders: William Kvist (VfB Stuttgart), Christian Poulsen (Evian Thonon Gaillard), Niki Zimling (Club Bruges), Jakob Poulsen (Midtjylland), Lasse Schone (NEC Nijmegen), Tobias Mikkelsen (FC Nordsjaelland), Michael Krohn-Dehli (Brondby), Thomas Kahlenberg (Evian Thonon Gaillard), Michael Silberbauer (Young Boys).
Forwards: Christian Eriksen (Ajax Amsterdam), Niclas Pedersen (FC Groningen), Nicklas Bendtner (Arsenal), Dennis Rommedahl (Brondby).
