He was one of three injury doubts for Stephen Kearney ahead of the game at Old Trafford, with wingers Manu Vatuvei and Roger Tuivasa-Sheck both named in the 19-man squad, alongside another winger in the shape of Jason Nightingale.
Kearney said: “We made a final decision on Frank this morning.
“He’d love to play, and we’d love to have him there, but the stakes are as high as they get this weekend and he’s not 100%. It’s naturally very tough for him to be this close and ruled out, but we’re very happy with our cover.”
Canterbury back-rower Pritchard has been struggling with a hamstring injury, which forced him to miss last weekend’s semi-final victory over England.
New Zealand 19-man squad v Australia: Jesse Bromwich, Greg Eastwood, Kieran Foran, Alex Glenn, Bryson Goodwin, Shaun Johnson, Sam Kasiano, Kevin Locke, Isaac Luke, Simon Mannering, Ben Matulino, Jason Nightingale, Frank-Paul Nu’uausala, Elijah Taylor, Roger Tuivasa-Sheck, Manu Vatuvei, Jared Waerea-Hargreaves, Dean Whare, Sonny Bill Williams.