Hussey had already said that the third test against Sri Lanka, entering its fourth day at the Sydney Cricket Ground, would be his last for his country and he would step away from international cricket at the end of the Australian summer.
Australia's selection panel, however, did not give the 37-year-old the opportunity of a farewell tour in the shortened form of the game, instead opting to look to the 2015 World Cup.
"Taking a long term view towards the ... World Cup the (selectors have) decided not to include Michael Hussey in the squad for the ... series," said chairman of selectors John Inverarity.
"Michael has been a tremendous ODI player for Australia over a long period of time, a match-winner for his country and his presence in coloured clothing will be sorely missed."
Australia captain Michael Clarke, aggressive opening batsman David Warner and wicketkeeper Matthew Wade were also not considered for the squad.
Clarke has been given time to recover from a hamstring injury, while Warner and Wade are given time to rest having played all six tests so far this season.
All rounder Shane Watson, who has been struggling with a calf injury, was also not considered. George Bailey will captain the side in Clarke's absence.
The five-match one day series begins on Jan. 11 in Melbourne.
Squad: George Bailey (captain), Ben Cutting, Xavier Doherty, Aaron Finch, Brad Haddin, Phillip Hughes, David Hussey, Mitchell Johnson, Usman Khawaja, Glenn Maxwell, Clint McKay, Steve Smith, Mitchell Starc. (Reporting by Greg Stutchbury in Wellington; Editing by Nick Mulvenney)