Vafaei will make history as the first Iranian player to compete at the Masters and is the second player to be invited after the initial draw. David B Gilbert is the other player, who was brought in following the suspension of Yan Bingtao, a former winner.
Xintong was suspended earlier in the week as part of the on-going match-fixing investigation.
The World Snooker Tour (WST) confirmed on Tuesday that former UK Championship winner Xintong was suspended along with Zhang Jiankang, taking the total number of suspended players up to ten.
Neither player chose to challenge the suspension so Xintong's place goes to the next eligible player, which is Vafaei.
He becomes the first Iranian to ever play at the Masters and will face Mark Selby in his tournament debut.
The statement from WST on Vafaei's inclusion said, “Hossein Vafaei has been awarded a place in the 2023 Cazoo Masters and will face Mark Selby in the opening round at Alexandra Palace in London on Sunday January 8th at 7pm.”