The scrum-half, who has won more than 60 caps, misses out on a place in coach Warren Gatland's 28-man group.
Gatland has named two specialist scrum-halves in Gareth Cooper and Mike Phillips, who returns to Wales duty after missing the entire autumn Test series through injury.
Meanwhile, Sharks are hoping that lightning does strike twice in the wake of last Friday's Munster mauling.
The Sharks' Heineken Cup hopes were blown away by the rampant European champions, who utterly demolished Philippe Saint-Andre's side 37-14 at Thomond Park to book their quarter-final berth.
It was a thoroughly depressing experience for everyone from Edgeley Park, including the 3,000 strong army of Sale fans who made the journey to Limerick.
The Thomond tonking also revived painful memories of Sale's last trip to Limerick in 2006 when they were thrashed 31-9.
However, within four months of that defeat, the Sharks went on to be crowned Guinness Premiership champions and vice-captain Dean Schofield is determined to join his under-performing colleagues in a similar response this time round.
"You were looking at the champions of Europe out there on Friday night and they showed there is a huge difference between the Guinness Premiership and the Heineken Cup. They showed us just why they are the European champions," Schofield admitted.
Finish
"However, we've still got everything to play for this year and we could still finish top of the league so we have got to try and crack on with that.
"I don't think the defeat will knock our confidence in the league. We've got Worcester up next in the Premiership and we'll stick together and move on.
"The only way to recover from a defeat like that is to put it right on the pitch. There'll be no talking or soul-searching - there's only one place to put it right and that's out on the pitch.
"There are no excuses, the best team won on the night and that's where we need to be if we are ever to progress in this event."
For director of rugby Saint-Andre, it was a painful way to see his hopes of European glory bite the dust in what will be his last year in charge at Sale.
He admitted: "When you concede six tries you have to say you have been given a lesson in rugby and we were second best in every area on the night."
Saint-Andre also insisted he had no regrets over his team selection and defended his decision to start with Richard Wigglesworth in preference to Peel at scrum-half, even though the in-form Welshman helped create Sale's sole try seconds after coming on as substitute.
"I have no regrets about not starting with Dwayne," the Frenchman declared.
"Yes, Dwayne made a fantastic break to set up the try when he came on as sub but at the moment I feel there is not too much difference between Wiggy and Dwayne.
"And I don't think that we lost the game in the scrum-half area - we lost it in the contact area."
Just to compound a miserable trip for Sale, centre Andy Tuilagi faces a lengthy spell on the sidelines after dislocating his shoulder.
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