Marsh has been ruled out of the white-ball series in Pakistan with a hip injury.
Marsh was roped in by DC at the IPL 2022 mega-auction for a whopping sum of INR 6.5 crore. He was set to join the franchise on April 6 after the culmination of the white-ball series in Pakistan.
In a statement, Cricket Australia on Wednesday (March 30) confirmed that Marsh will be released after an assessment showed he won’t be able to participate in the remaining three matches of the Pakistan tour.
"Marsh will travel to India to link with the Delhi Capitals squad where former Australian and current New South Wales physiotherapist Pat Farhart will manage his recovery following an isolation period," it added.
After the three-ODI series, Australia will play a solitary T20I against Pakistan in Lahore. The visitors won the Test series 1-0 last week.
"Being able to focus on my recovery without the travel and isolation break is the best approach," Marsh said.
"I am disappointed to miss the Pakistan series but look forward to rejoining the Australian squad for our next tour."
The tourists have been hit by multiple injuries and COVID-19 cases on the Pakistan tour. CA said all the available players and staff in Pakistan returned negative COVID-19 tests after the first ODI on Tuesday and again on Wednesday.
(With India Today inputs)