Henry Speight's Olympic dream is over after he suffered a knee injury that has ruled him out of the rugby sevens for Australia in Rio.

Speight, a five-time Wallaby, suffered the injury on Tuesday and is expected to be sidelined for up to 12 weeks.

Australia sevens coach Andy Friend was shattered for the 28-year-old, who also suffered a facial injury while playing for Brumbies in Super Rugby earlier in 2016.

"We're all gutted for Henry. He made a commitment to the program and has done everything he possibly could to get himself in the frame for Olympic selection," Friend said.

"Even after the facial injury he received some 10 weeks ago, Henry's commitment didn't waver, but the rugby gods just haven't been kind to him whatsoever.

"On behalf of everyone at the Australian Sevens program, we would like to wish Henry all the best in his recovery."

Australia are set to announce their men's and women's squads for the sevens on July 14.