Iran announced its squad for the 2018 World Cup late Sunday, with two midfield stars making the cut despite being banned past year for playing against an Israeli team.
"Dani is a great player and leader and we are going to miss him, but we have other options", Tite said.
The Brazil squad will convene in the capital on 21 May before travelling to London a week later, basing themselves at Tottenham's training centre before friendlies with Croatia at Anfield on 3 June and Austria in Vienna on 10 June.
Brazil will need him showing all the skills that made him the world's most expensive footballer, with a record 222 million euros ($264 million) transfer from Barcelona to PSG last August.
CRPF jawan killed in encounter in Pulwama
In an appalling incident a CRPF trooper was killed in a gunfight with militants at Bargam village of south Kashmir's. The security forces have managed to trap the terrorists.
He has been replaced by Manchester City right-back Danilo, while Neymar recovered in time to be named in Tite's selection. Tite said he needs "a pacemaker" in the team, which he has not received from Beijing Guoan's Renato Augusto.
The poster boy of Brazilian football who plies his trade for PSG is now recuperating from a broken metatarsal injury he suffered in March, and the football-crazy nation of Brazil will be hoping their dribbling wizard would be fit enough to inspire the Samba boys in Russian Federation. "We have to concentrate on preparing", Tite said.
The "Selecao's" current winning ways return the team to the vibe it enjoyed for decades until a slack period that reached a nadir during Brazil's hosting of the 2014 World Cup, when the national side crashed out of the semi-finals 7-1 to Germany.
Their campaign begins against Switzerland on June 17.