Kyrgios has been weighing up his Olympic participation for the past two weeks after making his return to the international circuit following an 18-month break.

Tennis Australia and the Australian Olympic Committee announced his selection last week, but Kyrgios was uneasy about playing at a heavily-restricted event because of coronavirus concerns.

The Olympics are set to go ahead without crowds as Tokyo health officials deal with the latest coronavirus outbreak.

Athletes will be tested regularly and unable to mingle with others, as well as adhering to tight movement restrictions and having to leave the Games just days after their event finishes.

Kyrgios said the lure of the Olympics was being able to watch other sports and meet athletes from other sports in the village.

"Hey guys, I just want to let you know that I've decided to withdraw from the Olympics," Kyrgios said on social media.

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"It's a decision I didn't make lightly. It's been my dream to represent Australia at the Olympics and I know I may never get that opportunity again.

"But I also know myself. The thought of playing in front of empty stadiums just doesn't sit right with me. It never has.

"I also wouldn't want to take an opportunity away from a healthy Aussie athlete ready to represent the country."

Kyrgios is in the Bahamas recovering from an abdomen injury suffered in his third-round loss at Wimbledon last week.

He is set to play in Atlanta in the same week of the Olympics.

"I will also take the time I need to get my body right. Good lucky to all the Aussies competing and I'll see you back on the court real soon," Kyrgios said.

Kyrgios' latest Olympic hurdle follows drama in 2016, when a stoush with then Australian chef de mission Kitty Chiller led to Kyrgios pulling the pin on the Rio Games.

Chiller demanded an explanation from Kyrgios after on-court outbursts and the pair were engaged in a slanging match before the Canberran quit his Olympic bid.

Australia's tennis hierarchy will now meet to discuss a replacement for Kyrgios, after initially selecting 11 players including Ash Barty and Alex de Minaur.

More to come.