Australia's all-rounder Mitch Marsh's international future has taken another hit with a back injury ruling him out of the upcoming Champions Trophy 2025.

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Marsh had been contending with a lower back issue since being dropped from the Test team after the fourth match of an unconvincing home series against India.

He missed the end of the Perth Scorchers' Big Bash League campaign but the problem deteriorated over the past three to four weeks as Marsh attempted rehabilitation.

The reigning Allan Border Medallist's injury is not a stress fracture as had been reported on Friday morning. Cricket Australia selectors made the call to sideline Marsh from the Champions Trophy while meeting on Thursday night during the two-Test series in Sri Lanka.

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Marsh will also miss the two-match One Day International series against Sri Lanka that follows the Tests.

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The hope is that sidelining Marsh in the short term will give the 33-year-old the best chance of extending his international career, but there is no timeline for his return.

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Marsh still holds hope of a Test recall but now appears stuck behind allrounders Beau Webster and Cameron Green, who is due back in May.

Green may not be available to bowl before the World Test Championship Final against South Africa in June, which is followed by a three-match series against West Indies to follow.

Marsh's injury could also end his hopes of lining up for the IPL's Lucknow Super Giants in March after Justin Langer's team selected him at last year's auction.

Smith or Head to lead in CT?

The allrounder had been set to captain Australia in the Champions Trophy, which begins in Pakistan in February if Pat Cummins failed to recover from his own ankle injury in time.

Australia remains unsure whether Cummins will be available, with the captain missing the Sri Lanka Test series for the birth of his second child.

Selectors released a preliminary Champions Trophy squad earlier this month but it does not need to be finalised until February 12. Steve Smith or Travis Head would be the clearest options to captain Australia if Marsh and Cummins are unavailable.

Australia play their first match of the tournament against England in Lahore on February 22.

(With inputs from agencies)