The world number one had been waiting since a judge overturned the original decision on Monday to find out whether Immigration Minister Alex Hawke would use his powers to reimpose the penalty.
Djokovic was last night included in the delayed Australian Open draw, where he was drawn against fellow Serb Miomir Kecmanovic.
And, just before 6pm (7am UK time) on Friday, Hawke released a statement saying he had made the judgement to send Djokovic home “on health and good order grounds”.
Hawke said: “Today I exercised my power under section 133C(3) of the Migration Act to cancel the visa held by Mr Novak Djokovic on health and good order grounds, on the basis that it was in the public interest to do so.
“This decision followed orders by the Federal Circuit and Family Court on 10 January 2022, quashing a prior cancellation decision on procedural fairness grounds.
“In making this decision, I carefully considered information provided to me by the Department of Home Affairs, the Australian Border Force and Mr Djokovic.
“The Morrison Government is firmly committed to protecting Australia’s borders, particularly in relation to the Covid-19 pandemic.”
Djokovic arrived in Melbourne on January 5 having been granted an exemption through Tennis Australia from the country’s strict entry rules regarding Covid-19 vaccination on the grounds that he had been recently infected with the virus.
But he was stopped by the Australian Border Force and questioned through the night before being informed that his visa had been cancelled. He was then taken to a detention hotel.
Djokovic appealed the decision and five days later a judge ruled in his favour, seemingly freeing him up to play in the Australian Open, which begins on Monday.
There could yet be a further legal challenge from the world number one but, if not, his hopes of winning a 10th title at Melbourne Park and 21st grand slam crown are at an end.