The 19-year-old was included in Gareth Southgate’s 33-man pool, which is due to be reduced to 26 later today ahead of the tournament.
But Greenwood will not make the cut after United announced that playing in the competition would not be “beneficial” for an ongoing injury problem.
Greenwood played 100 minutes of United’s Europa League final defeat to Villarreal last week but the Red Devils are now keen for the forward to have a period of rest.
“Manchester United striker Mason Greenwood has withdrawn from the provisional England Euro 2020 squad, in order to recover fully from an underlying injury that also kept him out of the Under-21 European Championship in March,” a club statement read.
“Mason’s club appearances were managed carefully to maintain his availability through the intensive 2020/21 Premier League and Europa League schedules.
“But a further spell of tournament football would not be beneficial and Mason will remain at Manchester United to recuperate and prepare for pre-season training.”
Greenwood has just one senior cap having made his debut in a Nations League win in Iceland last September.
After the game, both he and fellow debutant Phil Foden were sent home early after it emerged they had breached Covid protocols.
He returned to Southgate’s squad having hit eight goals in his last 14 appearances for United at the end of the season but will now miss out on the European Championship.