The Flying Scotsman was 4/1 second favourite to win the lucrative ITV4-televised event, which is contested by the players who start the season ranked in the top 16 of the PDC's Order of Merit, but his hopes have been dashed by his persistent back problem.
Anderson has been undergoing treatment since his semi-final exit at the hands of Michael van Gerwen at the World Championship last month but has not recovered in time to take to the oche in Milton Keynes.
The two-time world champion, who last season won eight titles including the UK Open, World Matchplay and Champions League of Darts, said: "I'm really sorry to the fans that I won't be there this weekend but it's a long year and I want to make sure I'm out of action for as little time as possible.
"I've been having a lot of physio work over the last few weeks and, as everyone knows, I've been struggling with my back for a long time.
"This is not a decision I've taken lightly but I haven't been able to sleep properly, and even just a few minutes practice causes severe pain, so my physio advised me I must rest at the moment to reduce the risk of causing any serious long-term damage."
Anderson will be replaced in the draw by Bunting, who is invited into the tournament due to being the next highest ranked player on the PDC Order of Merit.
Bunting now meets Darren Webster in the first round on opening night at The Marshall Arena, with defending champion Michael van Gerwen also in action.
MVG has won this event for the past four years and can be backed at 5/6 for glory with Sky Bet.
Next in the running is Michael Smith and Rob Cross, who are both 8/1 while PEter Wright and Mensur Suljovic are next in the running at 12/1 and 20/1 respectively.
Masters 2019: Draw & Daily Schedule
Click here for previous winners and odds
Friday February 1
Evening Session (7pm)
TV Coverage: ITV 4
First Round (Best of 19 legs)
- Daryl Gurney v Dave Chisnall
- Mensur Suljovic v Simon Whitlock
- Stephen Bunting v Darren Webster
- Michael van Gerwen v Jonny Clayton
Saturday February 2
Evening Session (7pm)
TV Coverage: ITV 4
First Round (Best of 19 legs)
- Gerwyn Price v James Wade
- Rob Cross v Joe Cullen
- Michael Smith v Ian White
- Peter Wright v Adrian Lewis
Sunday February 3
Afternoon Session (12.45pm)
TV Coverage: ITV 4
Quarter-Finals (Best of 19 legs)
Evening Session (7pm)
Semi-Finals (Best of 21 legs)
Final (Best of 21 legs)
- Winner SF 1 v Winner SF 2
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