The All Whites play Fiji, Papua New Guinea and the hosts in pool play with the Nations Cup champion representing Oceania at next year's Confederations Cup in Brazil.
The tournament's semifinalists also progress to the third stage of World Cup qualifying held during windows in September, October and March. The winner of that stage meets the fourth placed team from Concacaf for a place at the 2014 World Cup finals.
Herbert said West Ham's Winston Reid was capable of leading the defensive line in Nelsen's absence.
"Winston Reid, at the moment, and I watched him in a West Ham game recently, is absolutely outstanding. He's certainly a capable defender and somebody who can look after and lead that backline for us.''
"If we force the issue now and get a player who's going to struggle and be a concern, then, nationally, we're probably going to get nothing, and that's no good for anybody.''
The other defenders named in Herbert's squad are Michael Boxall of the Vancouver Whitecaps, Phoenix players Ben Sigmund and Tony Lochead, Tommy Smith of Ipswich Town and Ivan Vicelich of Auckland City.
The All Whites play friendlies against Honduras and El Salvador in the USA after the Nations Cup, which Nelsen definitely won't be a part of.
Squad: Goalkeepers: Jake Gleeson (Portland Timbers, USA), Glen Moss (Wellington Phoenix), Mark Paston (Wellington Phoenix). Defenders: Michael Boxall (Vancouver Whitecaps), Tony Lochhead (Wellington Phoenix), Ryan Nelsen (captain, Tottenham Hotspur, ENG), Winston Reid (West Ham, ENG), Ben Sigmund (Wellington Phoenix), Tommy Smith (Ipswich Town, ENG), Ivan Vicelich (Auckland City). Midfielders: Leo Bertos (Wellington Phoenix), Jeremy Brockie (Wellington Phoenix), Aaron Clapham (Canterbury United), Cameron Howieson (Burnley, ENG), Dan Keat (Los Angeles Galaxy, USA), Michael McGlinchey (Central Coast Mariners, AUS), Tim Payne (Blackburn Rovers, ENG), Marco Rojas (Melbourne Victory, AUS), Forwards: Kosta Barbarouses (Alania Vladikavkaz, RUS), Rory Fallon (Aberdeen, SCO), Chris Killen (Chongqing, CHN), Shane Smeltz (Perth Glory, AUS), Chris Wood (West Bromwich Albion, ENG).