The third Test will be replaced by a series of limited-overs games, with UAE expected to be confirmed as the tournament venue.
The PCB made the move in spite of the ICC Future Tours Programme dictating that the tour consist of three matches, because the new schedule will help the board secure a larger broadcast fee.
Espncricinfo quoted Cricket Australia's chief executive James Sutherland as saying:
"Our expectation will be that it will be in the UAE, and my expectation is that it won't be three Test matches, it will probably be two Test matches and a combination of one-dayers."
The last encounter between the two nations was also played over just two Tests, the "MCC Spirit of Cricket" series which took place in England in the northern summer of 2010 and was tied 1-1.
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Absolutely shocking! Shame on PCB for cutting down on Tests. We haven't had a full series with the Aussies in such a long time and we seldom play them anyway and now all we are getting is a non-nonsensical 2 test series, which should be outlawed and the whole cricketing world already bemoans anyway. What a sham this organization is.