The Belgian midfielder picked up a groin injury in their 3-1 win over Everton at Goodison Park over the weekend and was replaced by Bernardo Silva ten minutes to full time.
The former Wolfsburg and Chelsea midfielder could not pass the late fitness test to be in the match day squad as Manchester City look to build on the 3-0 win over Shakhtar Donetsk in their first group game.
No timeline has been given for De Bruyne’s return to action, though given his impressive form, the champions will hope he is not out for too long.
The 28-year-old missed much of last season due to a number of fitness issues, and could not have a big impact in Manchester City’s domestic treble winning campaign.
The official club site said in a statement: "Kevin De Bruyne suffered a groin injury in the win over Everton and will miss tonight's game against Dinamo Zagreb.
"The extent of his layoff depends on how well he responds to the rehabilitation programme overseen by the club's medical staff”
"Everyone at City wishes Kevin a speedy recovery and we all look forward to seeing him back in blue soon."
De Bruyne has been in fine form this season for both club and country, setting up eight goals and scoring two himself in the Premier League so far.