A bizarre FIFA rule means that the 23-year-old - along with teammates Kevin De Bruyne and Jeremy Doku - will be forced to watch from the stands.
The trio all watched on as the Citizens eased to a 3-0 semi-final victory over Japanese outfit Urawa Red Diamonds on Wednesday.
And because they were all left out of the matchday squad due to respective minor knocks, they are forbidden to feature against their Brazilian opponents.
FIFA rules states that no player who was omitted from the 23-man squad are to be eligible for any future matches in the competition.
Haaland had missed the last two three matches against Luton, Red Star Belgrade and Crystal Palace with a stress issue in his foot heading into the tournament.
Whereas Doku has been suffering from a muscular problem, with his Belgian compatriot De Bruyne only returning to full training this week after rupturing his hamstring.
Providing an update on De Bruyne and Haaland after City's victory over Urawa Reds, boss Pep Guardiola said: "Kevin started training yesterday and will train with us tomorrow.
"But it's been three months so he cannot play in the final, but he is getting better.
"Erling still cannot train."
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Guardiola could now start without a recognised centre-forward after he dropped 2022 World Cup winner Julian Alvarez to the bench.
It took until added time in the first half for City to take the lead against Urawa Reds, with Marius Hoibraten scoring an own goal.
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Mateo Kovacic then added a second for the treble winners in the 52nd minute, with Bernardo Silva finding the back of the net shorly before the hour mark.
Speaking after the match, Guardiola remarked: "The players know how important it is for the club.
"To be in this final, you have to do incredible things like win the Champions League. This may be the only time we play this in our lifetime.
"We are there. We will try to win a title we don't have and finish the circle."