The United News of India (UNI) reported Monday that Sidhu, who has only just been recalled following a 50-day ban, would be replaced by Sanjay Manjrekar.
Sidhu, India's most experienced batsman, was injured during Sunday's victory over Australia.
The 33-year-old was recalled to the side last month after serving a 50-day ban for walking out of the tour to England earlier this year, following a row with then-skipper Mohammad Azharuddin.
Sidhu, who averages over 40 in both test and one-day cricket, scored two against South Africa and 11 against Australia in his only two innings of the tournament.
Australia's defeat in Mohali on Sunday eliminated them from the tournament.
South Africa go into the final as the huge favourites after ending on top of the table with six wins out of six.