MELBOURNE, Nov 9 - Australia have dropped Marnus Labuschagne for next month's four-test home series against New Zealand after a prolonged slump in form, selector George Bailey confirmed on Monday.

The 32-year-old number three, once the world's top-ranked test batter, has gone 49 innings without a century and endured another poor tour of South Africa, scoring zero and four in the final test as Australia lost the match and series 2-1.

"At this stage we won't be considering Marnus for selection for certainly that first test, but for the New Zealand series," Bailey told reporters.

"There's been a lot of speculation around his place in the team, and so I think this gives him a little bit of space and clears up a bit of conjecture."

Labuschagne has averaged 23.66 and managed only 2 half-centuries in 10 tests since being dropped for Australia's three-test series against West Indies in the Caribbean last year.

He will return to captain Queensland in the Sheffield Shield while selectors weigh replacements.

Bailey said Labuschagne could still force his way back into the team for next year's tours of India and England.

"It's still possible, absolutely," Bailey said.

"And I think we all know how good and how effective Marnus can be at his best. But that performance hasn't been there."

Labuschagne's omission means another shake-up for an Australian top order which has been in almost constant flux since opener David Warner retired nearly three years ago.

Steve Smith, who is expected to return for the New Zealand opener in Perth on December 9 after missing the Cape Town test with a neck injury, could bat at number three but has been reluctant to budge from his favoured number four slot since an ill-fated spell as an opener.

All-rounder Cameron Green has previously batted at three at test level while Matt Renshaw could also be considered, though it would mean bringing in another opener.

Australia will finalise their squad following the next round of Shield matches, which begins on Wednesday.

Former test batters Kurtis Patterson and Sam Konstas are among Australia's best top order performers early in the Shield season. REUTERS