The former world number 10 hasn't played since October, when he lost in the first round at Vienna.
Anderson, a former world number 10 who is now down at 67 after suffering ankle and shoulder injuries in 2016, hasn't played since October, when he lost in the first round at Vienna.
"Unfortunately I have just made the very tough decision to withdraw from the Australian Open. I am really sad to miss one of my favourite events each season," wrote the 2.03m (6ft 8in) player who is South Africa's only man in the top 100.
"I am still recovering from an injury sustained last year but things are looking much better and I will be back in competition soon."
Anderson reached the fourth round of the Australian Open in 2013, 2014 and 2015.
The season's first Grand Slam event of 2017 gets under way in Melbourne on January 16.
Organisers said that South Korea's Hyeon Chung will take Anderson's spot in the main draw.