Batsman Hughes passed away at St Vincent's Hospital in Sydney on Thursday, two days after being struck on the neck by a short delivery from Sean Abbott during a Sheffield Shield game at the Sydney Cricket Ground.
Hughes underwent surgery, but was unable to recover from the injuries he sustained while playing for South Australia against New South Wales and died at the age of 25.
The left-hander was pushing for a recall ahead of Australia's Test series against India, which is due to start in Brisbane next Thursday.
India were due to warm up for the Tests with a two-dayer at the Adelaide Oval starting on Friday, but Cricket Australia (CA) have announced that the match will not take place.
CA's executive general manager of team performance Pat Howard said: "Today we were reminded that cricket is just a game and it is the characters that play the game that make it so special.
"We have spoken to the players and the ACA and have made the decision based on the best interest of all concerned.
"Several of the CA XI players have returned home to seek support and solace from their family, friends and team-mates.
"We appreciate the support and cooperation shown by the Board of Control for Cricket in India (BCCI), team management and the India players who have been nothing but respectful during this tragic time."