Jadeja, who did not play in either of India???s defeats in the first two Tests in Adelaide and Brisbane, will return home to undergo a rehabilitation programme.
He will be replaced in the squad by left-arm spinner Akshar Patel, who has yet to make a Test appearance.
Patel, 20, has played nine one-day internationals for India since making his debut against Bangladesh in June.
The third Test starts in Melbourne on Boxing Day with the last match of the series in Sydney from January 6.??