Australian Olympic officials on Monday said "it was clear" that the Tokyo Games could not go ahead as scheduled and told its athletes to instead prepare for the event in 2021.
The International Olympic Committee shifted its tone on the Games overnight as the coronavirus crisis spirals, saying it would step up planning for different scenarios, including postponement.
In response, the Australian Olympic Committee convened a board meeting on Monday and unanimously decided a Games starting in July was not possible given the uncertainty around the pandemic.
"It's clear the Games can't be held in July," Australian chef-de-mission Ian Chesterman said.
"Our athletes have been magnificent in their positive attitude to training and preparing, but the stress and uncertainty has been extremely challenging for them."
"We are now in a position where we can plan with greater certainty."