It is a stunning selection call on one of the most experienced and best-credentialled players in the young Eagles side.
Kelly's omission comes two months after he said his love of the game "hadn't been great" amid the ongoing struggles at West Coast.
He only managed 14 possession in last weekend's loss to GWS and will play in the WAFL this weekend, rather than Saturday's Gather Round match against Carlton at Adelaide Oval.
The Blues are also mired at the bottom of the ladder with a 0-4 start.
West Coast coach Andrew McQualter was asked before Thursday training in Adelaide whether Kelly's omission was a case of the new coach setting standards.
"It's really not about that at all - it's about picking a team who we think is rewarding the right behaviours every week and a team that can win each game of footy," he said.
"We've been really clear with Tim on what's required of him, within his role.
"Tim was really understanding - disappointed, as you'd expect. But we're really supportive of Tim, that he's going to get back to his best footy."
McQualter would not go into the details of why Kelly had been dropped.
"I don't think it's for a public forum. It's really for Tim and our match committee," McQualter said.
"Tim's really clear on what he has to get to work on."
The Eagles also dropped Tyler Brockman, Ned Long and Tom Cole as they recalled Liam Ryan, Jake Waterman, Harry Edwards and Jack Hutchinson.
Another high-profile West Coast player in the news this week is young gun Harley Reid.
West Coast are putting together long-term offers to Reid, who comes out of contract at the end of next season.
"We clearly want Harley to stay and a be a long-term player," McQualter said.
"Right now, he's invested in our footy club, he's coming to work every day, training to improve. So we just have to keep creating the right environment and encouraging Harley."
Asked about Reid staying next season, McQualter replied: "We haven't heard anything to indicate otherwise."
Reid showed improved form in last weekend's loss to GWS, spending most of the time across half-back.
"We saw some signs last week that were much better for Harley," the coach said.
With Jake Waterman set to return to play the Blues, there is a risk that West Coast might be too top-heavy in attack.
"It's a good question and it's something we're working through," McQualter said.
"We're not certain of where our team is going to land, but we'll keep exploring things."
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