It leaves the All Blacks low on experience in the front row.
Aidan Ross, George Bower, Angus Ta'avao, Ethan de Groot and Tyrel Lomax, who was named as a travelling replacement player in the initial squad, are the other props for the tour.
Newell, who will join the All Blacks this week for the first time, said it was a special moment to be called in to the team.
"It's just an awesome moment and I really can't put any words together at the moment," he said.
"I pretty much rung my whole family after. It's pretty surreal. Everyone was really really happy and we shared some pretty good moments.
"There's a number of Crusaders and leaders in that environment. I'm really excited to connect with them like I had all season. It is quite daunting but I just can't wait to get in there and learn from everyone."
The All Blacks will travel to South Africa this week ahead of back-to-back tests against the Springboks on August 7 and 14.