The 22-time Grand Slam winner, 35, had applied for special permission to enter the US because he is not vaccinated against Covid-19.
BBC reports the US requires international visitors to be vaccinated and proof will be required until at least 10 April.
Djokovic missed last year's US Open because of his vaccination status.
"World number one Novak Djokovic has withdrawn from the 2023 BNP Paribas Open. With his withdrawal, Nikoloz Basilashvili moves into the field," organisers said in a statement.
