Ross Taylor's side strain has ruled him out of the first Test against Australia in Wellington next week, with left-hander Henry Nicholls named in his place.
Nicholls, 24, has shown impressive recent ODI form with the bat, including half-centuries against Pakistan and Australia.
Black Caps coach Mike Hesson said Nicholls deserves his selection in a squad picked with conditions in mind.
"Henry has been very impressive with the way he's made the step up to international cricket, and we're confident of the job he can do for us in the top order."
Taylor's side strain has proven difficult to shake, and will be monitored ahead of the second Test in Christchurch beginning on February 20.
Wicketkeeper BJ Watling's back injury will also be monitored over the coming days, with Luke Ronchi named in the Test squad as cover.
On the plus side, Hesson said pace bowler Tim Southee will return to the New Zealand line-up after five weeks out with a bruised foot.
"Tim's a leader within our group and our most experienced bowler, so we're excited to have him fit and a part of our pace bowling attack."
Mitch Santner has been named as the sole spinner, based around what's expected from the pitches at the Basin Reserve and Hagley Oval.
Allrounder Corey Anderson and paceman Matt Henry both return to the Black Caps squad, giving Hesson a range of seam bowling options to consider.
"It's well documented how good a Test side Australia are, and we know it will take some exceptional cricket for us to have a chance of taking out the series," Hesson said.
The two-Test series begins in Wellington on February 12, skipper Brendon McCullum's world record 100th consecutive Test since debut.
Black Caps squad: Brendon McCullum (captain), Corey Anderson, Doug Bracewell, Trent Boult, Martin Guptill, Matt Henry, Tom Latham, Henry Nicholls, Mitchell Santner, Tim Southee, Neil Wagner, BJ Watling/Luke Ronchi, Kane Williamson.
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