The polarising Australian was primed for his Melbourne Park comeback next week, which would be his first major since the 2022 US Open.
He has been sidelined with career-threatening wrist and knee injuries that required three rounds of surgery.
After making his official return from injury at last week's Brisbane International, where he played singles and partnered former world No.1 Novak Djokovic in the doubles, Kyrgios revealed his comeback could be cut short.
He posted to Instagram on Wednesday that he had withdrawn from an exhibition event with Djokovic in Melbourne on Thursday, but was still hopeful of suiting up for the slam.
"Unfortunately won't be able to play my good friend (Djokovic) this Thursday as I've had an ultrasound on my abdominal and have a grade 1 strain," Kyrgios wrote.
Nick Kyrgios (left) and Novak Djokovic joined forces to play doubles in Brisbane. (Jono Searle/AAP PHOTOS)
"Will be resting and doing everything I can to be OK by the Aus Open."
The latest injury also threatens his participation in the upcoming Davis Cup tie, with Kyrgios a shock selection this week to face Sweden in Stockholm from January 31.
It would be the first Davis Cup appearance since 2019 for the 2022 Wimbledon finalist.
Before Brisbane the 29-year-old had managed just one ATP Tour match in more than two years and said he'd contemplated giving tennis away.
But the one-time world No.13, who is currently unranked, said he still had grand slam ambitions.
Kyrgios showed off some of his prodigious talent last week, despite he and Djokovic bowing out in a tight loss in the second round.
He had fallen to French star Giovanni Mpetshi Perricard in his long-awaited singles return the previous night.
After that clash, Kyrgios said his body had felt "really good" aside from his injured wrist.
"I felt relatively pretty good physically," Kyrgios said in Brisbane.
"My legs and my body felt really good. I felt fit and I'm in great shape, but obviously felt some discomfort with the wrist."
The draw for the Australian Open takes place on Thursday, with Kyrgios given a protected ranking of No.21.
His last Open was in 2022, when he reached the second round in singles and won the doubles title with fellow Aussie Thanasi Kokkinakis.
Later that year he reached his first singles grand slam final, losing to Djokovic at Wimbledon.
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