The feared forward, who sparked a melee at the end of the AFC Champions League final in November, will be replaced by Al Nasr midfielder Ibrahim Ghaleb in the Saudi squad, officials said.
The Al Hilal striker is deeply unpopular with Australian fans after he aimed a headbutt and spat at Western Sydney Wanderers defender Matthew Spiranovic in the ACL final in November, prompting a mass shoving match.
The "Saudi destroyer" was handed an eight-match Champions League ban for his actions, but not before he had been named Asian player of the year for his 10 goals in the tournament.
Al Shamrani's stocks plummeted still further in Australia after he appeared to shove a fan on his way out of the tunnel ahead of this month's international with Bahrain in Geelong.
His loss is a major blow to Saudi Arabia's efforts to win a fourth Asian Cup after victories in 1984, 1988 and 1996.