Manchester City's Barry suffered a tear to his lower abdomen against Norway in Oslo on Saturday.
His withdrawal was confirmed after Barry had a scan in the north-west on Monday.
Everton centre-back Jagielka has been called up as his replacement, the Football Association confirmed.
"I am very disappointed to lose Gareth, not only was he a member of my original 23-man squad but he has featured prominently in the England team over the last few years," said manager Roy Hodgson.
"I know how much he wanted to be part of the tournament but I'm sure he will still have a part to play with England after the Euros.
"I wish him a speedy recovery."
Barry's place was in doubt after he lasted less than half an hour of a second-half appearance in Saturday's friendly win over Norway in Oslo.
After the game Hodgson said he may have to trust Barry to let him know exactly how bad the injury was.
It is not thought that was necessary, though, with scans indicating there was no way the Manchester City man was going to be fit to play any meaningful role in Poland and Ukraine this summer.
Jagielka had been tipped to come in and strengthen Hodgson's defensive options.
The Everton man was produced an excellent performance in Norway alongside Joleon Lescott - a pairing that kept Spain out in November and are now pressurising Chelsea duo John Terry and Gary Cahill.
They will report for duty at England's Watford base on Tuesday, along with the remainder of Hodgson's 23-man squad.
That number will include Danny Welbeck and Glen Johnson, who had been doubts with ankle and toe injuries respectively.
However, it seems those problems have cleared up, along with Scott Parker's Achilles injury, and the FA are anticipating having to make no further changes when they submit their official squad to UEFA at 11am on Tuesday.
Ajax has released their away soccer jersey for the 2013/14 season. Get in the Gear.
One of the top soccer cleats for control the Nike CTR360 will not let you down on the field in tight spaces.
Chelsea won the Europa League on Wednesday. The Blues defeated Benfica 2-1 on injury time goal from Ivanovic.
The Juventus jersey for the 2013/14 was released earlier this week. Be the first to wear the colors of the Old Lady.
The Liverpool 2013/14 soccer jersey is available for pre-order. The Reds are eager to compete for silver next season.
The new PUMA evoSPEED 1.2 FG. A great new soccer cleat with classic look and first time for PUMA to be on the cleat.
Borussia Dortmund hears Wembley Calling and are headed to London for the Champions League final.
Bayern Munich are kings of Germany and hope to be crowned kings of Europe at Wembley later this month!
adidas has added some color to the Predator line with this new colorway. Released on May 17. Be the first to own a pair.
The push for more color on their cleats, adidas has added the infrared colorway to the adiZero f50 Line.