Atalanta's Hans Hateboer, who had not been part of the preliminary squad, has been called up as his replacement for the two matches in Portugal.
The Netherlands face England in Guimaraes on June 6 and will then play either the final or third-place playoff three days later.
Tete, who plays for French club Olympique Lyonnais, hurt his ankle in training on Sunday and the Dutch football association (KNVB) said on Monday he would not be fit in time for the Nations League.
Steven Berghuis, Terence Kongolo, Pablo Rosario, Wout Weghorst and Jeroen Zoet were all dropped from the preliminary squad named earlier this month.
Squad:
Goalkeepers: Marco Bizot (AZ Alkmaar), Jasper Cillessen (Barcelona), Kenneth Vermeer (Feyenoord Rotterdam)
Defenders: Nathan Ake (Bournemouth), Daley Blind, Matthijs de Ligt (both Ajax Amsterdam), Stefan de Vrij (Inter Milan), Denzel Dumfries (PSV Eindhoven), Hans Hateboer (Atalanta), Patrick van Aanholt (Crystal Palace), Virgil van Dijk (Liverpool)
Midfielders: Frenkie de Jong (Ajax Amsterdam), Marten de Roon (Atalanta), Davy Propper (Brighton & Hove Albion), Kevin Strootman (Olympique Marseille), Donny van de Beek (Ajax Amsterdam), Tonny Vilhena (Feyenoord Rotterdam), Georginio Wijnaldum (Liverpool).
Forwards: Ryan Babel (Fulham), Steven Bergwijn, Luuk de Jong (both PSV Eindhoven), Memphis Depay (Olympique Lyonnais), Quincy Promes (Sevilla).
(Reporting by Mark Gleeson; Editng by Toby Davis)
