Wasim has played just one championship match and a handful of one day games after bringing the injury with him following a busy international winter with Pakistan.
Lancashire had been hoping that he may be able to return for a couple of games late in the season but after yet another scan last weekend Wasim decided to have an operation which he hopes will clear up the problem once and for all.
``It is a massive blow to me,'' he said. ``I was really looking forward to this season because there is nothing that I want to do more than play for Lancashire but it has just proved impossible.''
Mike Atherton, John Crawley and Darren Gough are out of Monday's Floodlit Challenge between Lancashire and Yorkshire at Old Trafford - thanks to England's latest bonding session.
The England players have been told to report at Headingley tomorrow night for a get together before the crucial Fourth Test. While Lancashire acknowledge that England commitments must take priority, the news is a blow to their hopes of attracting a big crowd.
Lancashire were only six wickets away from their third consecutive championship victory at Old Trafford today thanks to another patient performance by Gary Yates.
The unsung off-spinner followed his four wicket effort in Lancashire's last win against Middlesex at Uxbridge by bowling Sussex veterans Neil Taylor and Bill Athey late yesterday.
Athey in particular was threatening to deny Lancashire having taken 40 balls to get off the mark and grafted to his half century in 120 deliveries.
But in the penultimate over of the day Yates tempted him to go for a cover drive and spun the ball back through the gate to leave Sussex 150 for four, still needing 104 to make Lancashire bat again.
It was a tough day in the field for Lancashire after Sussex resumed their first innings on 156-5. Skipper Mike Watkinson took three of the remaining five first innings wickets, his first in the championship since the opening game of the season against Durham, as Sussex were forced to follow on 254 runs behind.