The Harlequin winger, who resumed his international career with a try 30 months after his last cap, is replaced in the match day 23 by Chris Ashton who served his one-match ban.
It was always going to be between Monye and Charlie Sharples but it seemed the Gloucester winger made a bigger impact with two tries against the Islanders on Saturday.
Debutant, Tom Youngs, Joe Launchbury and Mako Vunipola all remain in the squad to face the Southern Hemisphere giants who suffered a 33-6 thumping in Paris last week.
Lancaster said: “It is tough on Ugo, who misses out this time, but Chris (Ashton) has been excellent in training and Charlie is rewarded for his performance at the weekend.”
“We had to make some tough decisions within the 23 and we are in a good position to be able to select from a largely fit squad.
“Alex Corbisiero has played once in five months so it is important that he goes back and has more game time for London Irish. Jonathan Joseph has come through training but Brad and Manu did well in the midfield and, similar to Alex, it would be good for him to get some game time.”
England
Forwards: Cole, Johnson, Launchbury, Marler, Palmer, Paice, Parling, Robshaw (capt.), Vunipola, Waldrom, Wilson, Wood, T. Youngs.
Backs: Ashton, Barritt, Brown, Care, Farrell, Flood, Goode, Sharples, Tuilagi, B. Youngs.
Released: Allen, Botha, Burns, Corbisiero, Dickson, Dowson, Haskell, Joseph, lawes, Monye, Morgan, Robson, Twelvetrees.