Fraser has rejected a contract extension with the Cherries and his deal is set to expire at the end of the month when he will become a free agent.
Bournemouth host CrystalPalace on Saturday evening, with Fraser still registered to the club but Howe will not select him.
Howe said: "I only want players who are fully focused on the relegation battle that we have ahead and I'm looking forward to doing that with my squad.
"These are the most important games this football club has had in recent times and we need everybody in the same position mentally, fighting tooth and nail, giving everything for the football club, and Ryan unfortunately, due to his contractual situation, can't commit to that."
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