Murray limped out of Wimbledon in July at the quarter-final stage and missed the US Open at the tail-end of 2017.
The Scot took time to recover in hope that he would return Down Under after the turn of the year.
But he was then forced to withdraw from the warm-up tournament, Brisbane International, earlier this month and now he has taken the decision to skip the opening Grand Slam of the year.
It is the first time in 13 years that Murray will miss out on playing in the Australian Open.
And the Scot admitted that he felt he was not “ready to compete” against the world’s best over five sets.
Murray 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.”
It is unclear if the 30-year-old will require surgery to rectify the problem.
Murray was due to hold a press conference this morning but made the late decision to pull out of the competition.
The two-time Wimbledon champion flew the Melbourne from Brisbane, ahead of a return to the UK.
Australian Open Tournament Director Craig Tiley also commented on Murray’s withdrawal.
“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,” Tiley said.
“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.”
