Kahui, who was named in the 26-man New Zealand squad for tests against France and Italy this month, today withdrew from the team and expects to have an operation on his left shoulder this week in Auckland.
He carried a longstanding shoulder injury into the Super 14 final against the Bulls last weekend then aggravated it during his team's 17-61 loss in Pretoria.
The Waikato centre, who has also played on the wing during his eight-test career, had been nursing the injury for more than year but realised the damage was severe when making a tackle on Bulls fullback Zane Kirchner.
After discussions with All Blacks coaching and medical staff it was decided Kahui needed an operation.
He is expected to be unavailable for the All Blacks' end-of-year northern hemisphere tour, meaning his latest comeback from injury is expected during next year's Super 14.
It is known whether Kahui will be replaced in the All Blacks squad before the first test against France in Dunedin next Saturday.
Conrad Smith was expected to be the first-choice centre alongside fellow Wellington and Hurricanes midfielder Ma'a Nonu.
Kahui damaged his right shoulder against the Hurricanes in 2007, an injury that required an operation and six months of rehabilitation.