Golf officials have banned John Daly from contesting this month's Australian PGA Championship at Coolum after the American stormed off The Lakes course midway through Thursday's first round of the Australian Open.

Daly had just hit six or seven balls into the water on the par-5 11th before calling it quits and returning to his Sydney hotel in a courtesy car.

Daly stood smoking a cigarette while waiting for the car to take him to his hotel but refused to speak to the media.

His girlfriend Anna Cladakis said "you can't play if you've run out of golf balls".

Daly later tweeted: "when u run out of balls u run out of balls. yes, I shook my player's partners hands & signed my card w/rules official."

'Wild Thing' Daly, who three years ago smashed a spectator's camera during the first round of the Australian Open at Royal Sydney, was already 7-over-par before shaking hands with playing partners Craig Parry and fellow American Hunter Mahan.

PGA of Australia chief Brian Thorburn subsequently released a statement confirming Daly's invitation to the PGA Championship from November 24-27 had been withdrawn, and that he will receive no appearance fee for either tournament.

"The PGA does not need this kind of behaviour tarnishing the achievements of other players and the reputation of our tournaments. John is not welcome at Coolum," Thorburn said.

Even before arriving at the 11th tee, Daly was upset after being penalised two strokes for hitting the wrong ball out of a greenside bunker on the 10th, a mistake that led to a triple-bogey 7.

Tournament director Trevor Herden said Daly's behaviour was unacceptable and indicated the two-times major winner was unlikely to ever be welcomed back to an Australian tournament.

"I'm extremely bitter and disappointed that he's treated this championship this way," Herden said.

"Now it's becoming a bit of a habit ... I certainly hope that all the tours deal with it in the appropriate manner this time.

"We are definitely disappointed in that attitude and it's unprofessional."

Herden said running out of golf balls was no excuse for quitting in the middle of a round.

"If you run out of golf balls and are acting in a professional manner, you would call the course officials and we would replenish his stock," he said.

Asked why Daly's entry was even accepted in the first place given his chequered history, Herden said: "Obviously he's a major winner; we need to pay him some respect too.

"Even though his times have moved on slightly, he's still a major winner.

"He likes to come back and if he wants to play the Australian Open, we have major winners.

"But I would say this will be the last time we see John Daly."

AAP/Reuters