The 30-year-old said: “Sadly I won’t be playing in Melbourne this year, as I am not yet ready to compete. I’ll be flying home shortly to assess all the options but I appreciate all the messages of support and I hope to be back playing soon.”
Australian Open tournament director Craig Tiley added: “We are fully aware that Andy has been going through a difficult period with his hip and that he’s done everything possible to prepare for the Australian summer.
“Personally, I also know that Andy loves tennis and would do anything to play. This is a very hard decision for Andy and we totally respect it.
“We wish him the absolute best on his road to recovery and look forward to having him back in Melbourne. He is a true champion and one of our favourites.”
Murray has not played a competitive match since Wimbledon last summer.
He released a statement on his social media pages on Tuesday where he admitted he was considering surgery to assess the problem, though his preference is to continue rehab and hope that prompts a recovery.
Kyle Edmund beat Hyeon Chung 7-6 (7/3) 5-7 6-4 to reach the quarter-finals of the Brisbane International.
The British No 2 took the first set in a tie-break and withstood a second-set wobble to eventually see off the South Korean.
Yorkshire’s Edmund will face either top seed and defending champion Grigor Dimitrov or Australian wild card John Millman in the last eight.
Johanna Konta is suffering from a similar injury to Murray’s and she was forced to retire from the Brisbane International due to injury in her quarter-final clash with Elina Svitolina on Thursday.
Ukraine’s Svitolina was leading 1-6 7-6 (8/6) 3-2 when Konta called time on her participation at the Pat Rafter Arena after seeking treatment two games earlier.
The British number one had looked in fine form, particularly in the first set, but will now turn her attention to getting fit for the Australian Open later this month.