Effects of d-site substitution in the d-p model simulating a CuO2-plane in high-T-c cuprates are investigated using the slave boson technique and the 1/N-expansion method. It is found that nonmagnetic impurities, e.g., Zn, substituted for Cu, strongly scatter the p-holes and drastically decrease hole densities at the neighboring O-sites. In the low doping region; the decrease reduces the Kondo temperature T-K at the neighboring Cu-sites. The repulsion U-pd between holes on the nearest neighbor Cu-and O-sites; which is known to enhance the charge susceptibility in the pure systems without impurities, turns out to promote the reduction of Tic due to the nonmagnetic impurity. Then, Cu d-spins in the vicinity of the impurity behave as local moments at temperatures higher than the reduced T-K.