Hazlewood missed the Ashes with hamstring and Achilles injuries, but had been expected to play at least part of the World Cup in India and Sri Lanka.
"We were hopeful Josh would be back to match fitness by the Super 8 stage but the latest indications he is still some time away and accelerating his program will carry too much risk," selector Tony Dodemaide said on Friday.
"We will not be naming a replacement player immediately. We feel we are well covered for the initial games so will make any later decisions based on priority need at the time," he added in a Cricket Australia statement.
With Mitchell Starc having retired from T20 and Pat Cummins also ruled out with a back injury, it will be the first World Cup in more than a decade without at least one of Australia's champion pace trio.
Cricket Australia said fast bowler Nathan Ellis and batter Tim David were on track to be available for the group stage, while legspinner Adam Zampa would be available for the first match against Ireland in Colombo next week.
Australia, the 2021 champions, head into the tournament after a 3-0 whitewash in their warmup T20 series in Pakistan.