"I'm absolutely devastated," Stewart said. "Shattered that I'm going to miss my second induction into the Rock and Roll Hall of Fame - and this time alongside my mates."
In a joint statement with Stewart, Hall of Fame organizers said Faces will still play a short set at Saturday's ceremony with Simply Red's Mick Hucknall replacing Stewart on vocals for the band that in the 1970s scored hits such as "Stay With Me."
The other four members of Faces included Ron Wood, Ronnie Lane, Kenney Jones and Ian McLagan.
Stewart becomes the second major star to bow out of this year's Rock Hall induction ceremony. Earlier this week, Guns N' Roses singer Axl Rose declined his invitation to be inducted with his old band mates with whom he had long feuded.
Others being inducted into the Cleveland, Ohio-based institution include members of the Red Hot Chili Peppers and the Beastie Boys, as well as singer-songwriter Donovan.
Stewart, 67, had already seen his life and career enshrined in the Rock Hall as a solo artist in 1994.
(Reporting By Bob Tourtellotte)
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