Lippi entered the field to remonstrate with United Arab Emirates referee Mohammed Abdulla Hassan after Evergrande players Zhang Lipeng and Gao Lin were sent off in the latter stages of a hotely-contested match the Wanderers won 1-0.
Lippi will not be allowed to coach his team when the two teams meet in the return leg at Tianhe Stadium on Wednesday night.
The Asian Football Confederation announced Lippi is provisionally suspended for one match.
An AFC statement read: "Guangzhou Evergrande head coach Marcello Lippi will serve a provisional one-match suspension following his indiscretion during the team's 0-1 defeat at the AFC Champions League quarter-finals first leg meeting against Western Sydney Wanderers in Sydney.
"The former Italian national team manager has been provisionally suspended in accordance with Article 129 of the AFC Disciplinary Code after he entered the field of play to confront the match referee Mohammed Abdulla Hassan (UAE) in the dying stages of the quarter-finals first leg match following the sending-off of a second Guangzhou player.
"The chairman of the AFC disciplinary committee decided that Lippi had purportedly displayed unsporting behaviour, an offence under Article 57 of the AFC Disciplinary Code, as well as indiscipline under Article 69 of the AFC Champions League Competition Regulations 2014.
"Lippi will therefore not be allowed to sit in the continental champion's dugout at the return leg to be played on 27 August in Guangzhou. The final decision of the AFC disciplinary committee will be issued following the completion of a full investigation. The Chinese Football Association has been notified of the decision."
Incensed Lippi claimed after the match that he tried to apologise to the referee for his behaviour but he was not allowed to see him.
Lippi could also be sanctioned for his strong criticism of the referee's performance at the post-match press conference.
Wanderers midfielder Vitor Saba also claimed that after the match Lippi accused him of getting Lin sent off by faking injury and wanted to fight him.