Prince Philip, 94, is said not to have attended hospital and has no plans to cancel any other forthcoming engagements.
In a statement, a Buckingham Palace spokeswoman said: "Following doctor's advice, the Duke of Edinburgh has reluctantly decided not to attend the commemorations marking the Battle of Jutland tomorrow in Kirkwall and Hoy.
"The Princess Royal, who was already attending the events, will represent the Royal Family."
Descendants of those who fought at Jutland have been invited to join the commemorations, which include a service at St Magnus Cathedral on Kirkwall in Scotland tomorrow.
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The cemetery stands close to Scapa Flow, from where the British Grand Fleet set out for the Jutland Bank to repel German forces attempting to break a British blockade.
Almost 250 ships took part, creating a scale of battle that has not been seen since.
Both nations claimed victory - Germany because of the 6,094 British losses compared to the 2,551 men it sacrificed, but Britain had seriously weakened the enemy's naval capability.
The Princess Royal will be accompanied by Vice Admiral Sir Tim Laurence as vice-chairman of the Commonwealth War Graves Commission.