The exclusion comes a day before Pakistan's first warm-up fixture against Bangladesh at the Blacktown Olympic Park Oval in Sydney Monday.
The Pakistan Cricket Board (PCB) has sent the name of left-handed batsman Nasir Jamshed to the International Cricket Council's (ICC) technical committee for inclusion in the World Cup squad as a replacement, reports dawn.com Sunday.
Hafeez was selected as a pure batsman in the team after getting reported for a suspect bowling action. He was due to undergo a bio-mechanics test to clear his action.
Hafeez had earlier failed to clear two unofficial bio-mechanics tests as both his around and over-the-wicket arm exceeded the permissible limit of 15 degrees.
Saeed Ajmal, another Pakistan off-spinner with a suspect bowling action, was recently cleared by the ICC after undergoing a successful corrective test.