UFC has not revealed the nature of Tavares' injury or when it occurred.
Tavares becomes the second fighter this week to withdraw from the Oct. 29 event because of injury.
With Tavares sidelined, bantamweights Scott Jorgensen and Jeff Curran will fight on the main card.
"Me and Scotty are going to tear (it) up," Curran said on Twitter. "Little guys like us know what the UFC fans want to see."
Tavares (7-1) was looking to rebound from his first loss as a professional mixed martial artist. He was on the short end of a unanimous decision against Aaron Simpson at UFC 132 in July.
Jacoby (6-0) will face Clifford Starks in a preliminary bout. Both Jacoby and Starks (7-0) will make their first appearance inside the Octagon.
UFC 137 will be at Mandalay Bay Events Center in Las Vegas.
Franklin McNeil covers mixed martial arts and boxing for ESPN.com. Follow him on Twitter at www.twitter.com/Franklin_McNeil.