Cano named Fielder and Davis to his squad on Monday but said he wanted more time to select the AL's last spot.
"It's hard," Cano said Tuesday prior to the announcement regarding Cespedes. "The big guys, because there's a lot of good guys up there that should be in the Derby. You only get to pick three. You try to do the best and pick the guys that you think are going to help you. There are other guys who should be in the Derby, but you only get a chance to pick three more."
Cespedes will become the fourth player not chosen for the All-Star game to compete in the event. The others were Rafael Palmeiro (2004), Hee-Seop Choi (2005) and Ryan Howard (2007), who was defending his crown from the previous year.
Cespedes has 15 home runs and 42 RBIs in 74 games this season, his second in the majors. The Cuban slugger belted 23 homers in just 129 games as a rookie last season.
ESPNNewYork.com's Matt Ehalt and The Associated Press contributed to this report.