Morris has been released by Canterbury after earlier being named to play in the Bulldogs' NRL clash with Canberra on Sunday afternoon.
NSW coach Laurie Daley confirmed Morris would return to take over at right centre shortly after the Blues announced the withdrawal of Dugan, who experienced further problems with the elbow he hyper-extended in St George Illawarra's loss to South Sydney in round 10.
"It's one of the hardest decisions I've had to make," said Dugan.
"I aggravated it at training yesterday. It's very disappointing but I had to do what was best for the team."
The NSW right centre role will be nothing new for Morris who has been a regular part of the Blues since 2012 and he resumes one of the hardest jobs in Origin over the last few years - stopping Greg Inglis.