Tigers winger Varndell, the top try-scorer in the Guinness Premiership this season, is elevated from the England Saxons squad after Paul Sackey of London Wasps was advised to start rehabilitation on a knee injury rather than go on tour.
Hipkiss fractured his right cheek in Saturday's Guinness Premiership Final against Wasps at Twickenham and has been advised that the injury will take three weeks to heal, therefore making him unavailable to tour and denying him the opportunity to add to his six senior caps.
The Tigers centre has been replaced in the national squad by Wasps centre Dominic Waldouck.
Varndell, who earned the first of his three caps against Samoa in 2005, was withdrawn from the England Saxons squad bound for the Barclays Churchill Cup and is now instead preparing to go to New Zealand.
"My thoughts are with Danny and Paul, but it is a great honour to be called up with so many quality English wingers around in the Guinness Premiership," said Varndell who ended the season with 14 Premiership tries and 18 in all competitions.
"My focus has been entirely on playing well for Leicester Tigers and trying to add to my game. Now I have an opportunity to tour with England
"I'll sure the experience of being involved in the squad will be good for me.
"My last tour was to Australia so I'm looking forward to having an opportunity in New Zealand."
Charlie Hodgson and Toby Flood have been passed fit to travel to New Zealand after knocks in Sunday's match between England and the Barbarians at Twickenham.
Rob Andrew, England team manager for the New Zealand tour, said: "On behalf of the squad, I'd like to wish Paul and Dan speedy recoveries from their injuries.
"Both Dominic and Tom are excellent players and I look forward to working with them over the next three weeks."
Varndell will be joined by club colleagues Ben Kay and Tom Croft in the senior England squad preparing for the Tests against hosts New Zealand on June 14 and 21.
The England Saxons squad, which departs for Canada today, includes Leicester Tigers quartet George Chuter, Jordan Crane, Ollie Smith and Richard Blaze.
Varndell and Waldouck have been replaced in the Saxons squad by Tom Biggs of Leeds Carnegie and Adam Powell of Saracens.
