Ballack is still working his way back to fitness after suffering an ankle injury in May which ruled him out of last month's World Cup.
Loew said in a statement: "Michael is going the right way after his injury and everyone is satisfied with the healing process. The important thing is that he rediscovers his best form at Leverkusen."
According to the German Football Association Loew told Ballack of his decision by telephone.
With Ballack absent defender Philipp Lahm is likely to retain the captaincy having led Germany to third at the World Cup.
Loew was in Dortmund last Sunday to see Ballack make his first appearance back in the Bundesliga after four years in the Premier League with Chelsea as his side Bayer Leverkusen beat Borussia Dortmund 2-0.
After his injury, Ballack only returned to training at the start of August and has played only a Bundesliga and Europa League match.
As expected Loew has called up 17 members of his World Cup squad.
Looking ahead to the two Euro 2012 qualifiers Loew said: "We want to win our first two games with the same football that we played at the World Cup."
Midfielders: Sami Khedira (Real Madrid/ESP), Toni Kroos (Bayern Munich), Marko Marin (Werder Bremen), Mesut Ozil (Real Madrid/ESP), Bastian Schweinsteiger (Bayern Munich), Christian Trasch (Stuttgart)
Source: AFP Global Edition