Cricket Australia chief executive James Sutherland today said the tour, scheduled to start with a warm-up match on Saturday, would not go ahead as planned after Australia's Department of Foreign Affairs identified a security risk.
Sutherland says: "The threats were credible and real and targeted, not only against Westerners but against Australians."
The squad had been scheduled to leave Australia last Monday but was disbanded after remaining on stand-by for three days.
Players have returned to their provincial teams for domestic competition.
Sutherland said he'd negotiate with the Bangladesh Cricket Board regarding potential future dates for the series.