Kerber, a three-times Grand Slam winner, won the silver medal in the women’s singles event at the 2016 Rio Games.
The 33-year-old has had a busy grasscourt season, having participated in three tournaments in the past month winning in Bad Homburg and reaching the semi-finals at Wimbledon.
“Representing Germany in London 2012 and Rio 2016 as part of the German team has always been one of my favourite memories of my career so far,” Kerber said in a statement.
— Angelique Kerber (@AngeliqueKerber) 1626352421000
“This makes it even more disappointing for me to accept the fact that my body needs rest after the intense few weeks that lie behind me and that I have to recover first before returning to competition later this summer.
“Thank you for your support, as this has been a very difficult decision for me. Good luck to all my fellow German athletes in Tokyo, I will miss you.”
A number of big names in tennis will be missing at the Olympics, including Roger Federer, Rafa Nadal, Dominic Thiem, Serena Williams, Simona Halep and Bianca Andreescu.
Britain’s top seeds Dan Evans and Johanna Konta will miss out after testing positive for COVID-19.