The four-time Tour de France winner, who has returned from a career-threatening injury suffered last year, will not be given another chance to race for the yellow jersey with Team Ineos, but instead will ride the Vuelta a España.
Team Ineos will instead back Egan Bernal, who is hoping to defend his 2019 title, with Pavel Sivakov and Richard Carapaz riding in support.
Both Froome and 2018 Tour winner Geraint Thomas have been left out of the team for the Tour, with Thomas set to ride the Giro d’Italia in October.
Froome said: “It’s definitely a readjustment for me, moving the goal posts from the Tour de France to the Vuelta a España.
“But i think given where I’ve come from through the last year, I’ve had an incredible recovery from the big crash I had last year and I’m in a very fortunate position to back racing now already.
“I’m not confident I can really fulfil the necessary job that would be needed of me at this year’s Tour de France.”
Froome has been recovering from serious injuries suffered at the 2019 Criterium du Dauphine, when he crash at high-speed during a recon of the time trial stage.
After a long healing process, Froome returned to racing in early 2020 before the coronavirus pandemic took hold and forced the UCI to suspend all racing.
With the Tour de France delayed until the end of August, Froome hoped to be able to regain his form to chase a fifth Tour title, but his performances in the first stage races of the restart season raised questions about his fitness.
Froome said: “I think it’s a lot more realistic targeting the Vuelta a España and it gives me a chance to get stuck into something that’s deliverable.
“I think at the end of the day people have to remember that I’m coming back from a horrendous crash last year where I fractured a lot of bones in my body. The recovery is complete, I don’t have any pain or any lingering issues, but certainly that was a big knock to me and I think I’m still coming back to that full level of fitness.
“There are some pretty crucial steps in my progression towards being able to win a race again, hopefully that will all come together for the Vuelta a España.”
The 2020 Vuelta, scheduled to run from October 10 to November 8, would be Froome’s last race in Team Ineos colours as he is leaving the team after a decade to join Israel Start-Up Nation.