The Wallaby fullback rolled his right ankle while playing with his daughter in the garden of their Brisbane home, damaging the lateral ligaments.

Latham was given a week off training to help the injury to heal, but was ruled out after failing a medical test on Wednesday.

The squad due to leave on Friday and will play tests against Argentina, England and Italy in November.

"It's very disappointing to miss this tour but in reality I would only be an outside chance to play England, which is the third match out of four," Latham said.

New South Wales winger Scott Staniforth was added to the squad as his replacement.

Mat Rogers and Matthew Burke are now expected to fight it out for the full-back shirt.

"I know I'll be giving someone else a chance," said Latham.

"But plenty of other players are in that position and now I've got the opportunity to have a good off-season so I can start the World Cup year fully fit."