"It would be about three weeks to recover from the strain, and at that stage without having trained for three weeks, it just does not make since to continue," Paul Doyle told Reuters.
Surgery will not be required and the 29-year-old "absolutely" plans to resume running in 2013, Doyle said.
Powell strained the muscle when he injured his groin in Sunday's Olympic 100 metres final. He finished last in the race as fellow Jamaicans Usain Bolt and Yohan Blake took gold and silver.
Powell anchored Jamaica to a world record in the 4x100 metres relay at the Beijing Olympics, but the mark was bettered by a team of Nesta Carter, Michael Frater, Blake and Bolt at the 2011 world championships.
All four are in London and are expected to run the relay in Saturday's final.