Chairman of selectors George Bailey confirmed on Monday that Labuschagne would be omitted from Australia's yet-to-be-named squad for the first Test against New Zealand.
Australia's next Test begins on December 9 in Perth, but Bailey and his panel have made an early call to put Labuschagne out of his misery.
Bailey told reporters the out-of-form star wouldn't be considered for the entire four-Test series against New Zealand.
However, the door remains open for a recall on ensuing tours to India and England.
"This gives him a little bit of space and clears up a bit of conjecture ... and we'll pick the rest of that squad at the end of round four of Sheffield Shield," Bailey said.
"It's still possible (he will be recalled after the trans-Tasman Test series), absolutely.
"He's always been an incredible performer at first-class level. So I expect that'll be the case.
"There's no message to go back and do anything in particular, the currency is pretty obvious."
Labuschagne burst onto the scene with 10 centuries from his first 33 Tests, when he averaged 59.43 and at one stage was the world's top-ranked batter.
But a tortured tour of South Africa, where he logged scores of zero, four, 14, 39, 37 and 37, extended a miserable run of 49 innings without a Test century.
Labuschagne was briefly dropped for last year's tour of the West Indies, but batted his way straight back into the side for the home Ashes with two centuries for Queensland in the Sheffield Shield.
The 32-year-old, once touted as a future national captain by some pundits, will return to leading Queensland in the Shield as he bids to restore confidence and form.
"We all know how good and how effective Marnus can be at his best, but that performance hasn't been there," Bailey said.
"He's pragmatic, he knows that the fundamental nature of being a batter in the top six is to score runs and that just hasn't happened."
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