The Australia squad were scheduled to fly out to Bangladesh on Monday for a two-Test series commencing in Chittagong next Friday, with a warm-up game against a Bangladesh Cricket Board XI planned to start this Saturday.
But their departure was delayed following a warning from Australia's Department of Foreign Affairs and Trade's of 'reliable information' of a threat to Australians in Bangladesh.
A Cricket Australia security delegation returned from a visit to Bangladesh on Tuesday, with the killing of an Italian aid worker during their time in the Asian nation seemingly increasing the likelihood of the tour being abandoned.
And despite the Bangladesh Cricket Board (BCB) saying there is 'no reason' for the Test series not to go ahead, Cricket Australia chief executive James Sutherland on Thursday revealed the tour had been postponed.
"After six days of extensive deliberations and research, we've come to the conclusion that we have no other alternative than to postpone our tour to Bangladesh," Sutherland said.
"It's a very disappointing outcome from our perspective.
"Six days ago we were informed by ASIO (the Australian Security Intelligence Organisation) and our Department of Foreign Affairs that there was a credible risk to Australians in Bangladesh and we've worked through a rigorous process to try and understand that.
"We've had three people on the ground meeting with Bangladesh Cricket, Bangladesh government sources and members of our foreign affairs department in Bangladesh.
"In the end, all things considered, we've made this decision to postpone the tour for now and we'll enter into discussions with the Bangladesh Cricket Board about when we can play this cricket series next."
The Australia Test squad will instead play for their sides in the domestic One-Day Cup.
The Bangladesh Cricket Board expressed disappointment at the decision, insisting it is still safe for the tour to go ahead.
"The Bangladesh Cricket Board is disappointed at the decision of Cricket Australia to postpone the Test series in Bangladesh on 'security' grounds," read a BCB statement.
"The BCB does not agree with the view that Bangladesh is at the moment unsafe for hosting the series against Australia.
"On the contrary, the Board is of the opinion that Bangladesh at present offers one of the safest environments for holding international sporting events including cricket.
"The Board is committed to rescheduling the series at a later date and will continue to work closely with CA to that end."