The star bowler was named in Australia's 15-man World Cup squad, with hope that he would recover from his injury within time. However, after recent scans and testing, it is clear that Richardson would not be ready in time.
"This is obviously very disappointing news for the team and for Jhye, who has been exceptional throughout his rehabilitation process," said team physiotherapist David Beakley.
"After his most recent assessment and attempting to bowl in the nets, it was clear that Jhye was not progressing as fast as required.
"Therefore, in consultation with selectors, we made the decision to withdraw him from the squad." Kane Richardson was called up to replace him, with long-time pace spearhead Josh Hazlewood, who has been put of action since January with a back injury, overlooked.
Australia World Cup squad: Aaron Finch (capt), Usman Khawaja, David Warner, Steve Smith, Shaun Marsh, Glenn Maxwell, Marcus Stoinis, Alex Carey, Pat Cummins, Mitchell Starc, Kane Richardson, Nathan Coulter-Nile, Jason Behrendorff, Nathan Lyon, Adam Zampa