Sherrill, 35, will have the ulnar collateral ligament replacement surgery performed May 4 in Los Angeles by Dr. Lewis Yocum.
Sherrill went on the 15-day disabled list on April 13 with a sprained flexor bundle after giving up six hits and four runs in 1 1/3 innings in his first two appearances.
After signing a one-year, $1.1 million free agent contract over the offseason, Sherrill never was fully healthy this spring. He felt some soreness in his elbow while throwing a bullpen session before camp opened in February, then was held back initially.
"I don't think he ever got on track," Mariners manager Eric Wedge said. "There were a few moments where we had some optimism, but it never really got to the point where we felt he needed to get to."
Wedge said he's comfortable for now with lefties Charlie Furbush and Rule 5 pickup Lucas Luetge in the bullpen.
"Those two guys have been doing pretty good," Wedge said. "We've got other guys in Triple-A, but I've been pleased with Furbush and Luetge up to this point. They're both young, but they're finding their way."