The 27-year-old Leicester centre picked up the injury in training and will be replaced by Sale wing Chris Ashton on the bench for the opening November test at Twickenham.
Tuilagi, who last played for England in 2016, has endured a wretched four-year run of injuries.
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England produce second-half masterclass in Italy thrashing in Women's Six Nations
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"Manu's disappointed. He desperately wanted to play for England again," scrum coach Neal Hatley said.
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Watson helps England to easy victory over Italy
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