Jhye Richardson was ruled out of the World Cup after failing to recover from a dislocated shoulder, with Kane Richardson to replace him.
Richardson picked up the injury during Australia's ODI series against Pakistan in the United Arab Emirates, but was included in the squad for the World Cup in England starting later this month.
But recent tests showed he would not recover 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 ruled out of action since January with a back injury, overlooked.
Chief selector Trevor Hohns said the focus was on having Hazlewood ready for the Ashes which starts in August.
He was named in Australia's one-day A squad, which will play games in England while the World Cup is on.
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