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New Zealand opening batsman Tom Latham says it is "gutting" that seam bowler Trent Boult is heading home from the tour of Australia with a broken hand.

New Zealand's Boxing Day Test has turned into a disaster with a perilous on-field position made worse by seam bowler Trent Boult breaking his hand.

The left-arm opening bowler was hit on the right hand by a Mitchell Starc delivery while batting on Saturday during the Black Caps' first innings against Australia at the MCG.

The Kiwis have confirmed Boult will miss the third and final Test at the SCG, starting on Friday, flying home to New Zealand after the end of the Melbourne match.

He will require about four weeks of recovery.

Black Caps opening batsman Tom Latham said it was "gutting news" for Boult and the entire team.

"To have someone like that ruled out with his injury is obviously disappointing," Latham said.

"I'm sure whoever will come in will be up for the task."

Boult still managed to bowl at the start of Australia's second innings.

The 30-year-old went off for scans on Saturday, but later returned to the field and ended up adding three overs to the six he had previously bowled.

It continues a tough run of luck for Boult who missed New Zealand's first Test loss against Australia in Perth because of a rib issue.

New Zealand say a replacement bowler will be announced at a later date.

The Kiwis' next Test series is in February at home against world No.1 ranked India.