Wood was set to face the Mexican at the Motorpoint Arena in Nottingham on September 24 and headline Matchroom's show.
Injury has ruled out Nottingham Forest fan Wood but the rest of the card will go ahead with a bout between IBO lightweight belt-holder Maxi Hughes and Kid Galahad set to top the bill.
Promotor Eddie Hearn said: "We're gutted to lose such an explosive headliner in Leigh Wood vs. Mauricio Lara so close to fight week but unfortunately Leigh suffered a torn bicep during sparring and there's no way he can get in the ring against such a dangerous opponent with only one arm.
"I'm pleased to confirm that our show at the Motorpoint Arena Nottingham on September 24 will go ahead with the IBO Lightweight World Title clash between Yorkshire rivals Maxi Hughes and Kid Galahad now topping the bill.
"There's more World Title action on the undercard with Hannah Rankin defending her WBA and IBO Super-Welterweight belts against former Super-Featherweight World Champion Terri Harper.
"Both Hughes vs. Galahad and Rankin vs. Harper are worthy of headlining their own shows and we've got some of the best emerging talent featuring on the undercard such as Cyrus Pattinson and Junaid Bostan."
Wood produced a successful defence of his WBA title at Motorpoint Arena in March when he produced a brutal 12th-round stoppage of Michael Conlan but will have to wait a little while longer before he is back boxing.