Seven-time Australian Open champion Novak Djokovic has pulled out of next week's Adelaide International in a body-blow to the South Australian capital which was celebrating the return of top-level tennis.

The world No.2 is leading his country's charge at the ATP Cup men's teams event with Serbia's semi-final against Russia to take place in Sydney on Saturday.

Karel Khachanov destroys his racquet after losing his serve to go down a set to Dusan Lajovic.

Djokovic was the main drawcard for Adelaide, hosting ATP and WTA events in the week immediately before the opening major of the year, the Australian Open at Melbourne Park.

The 16-time major winner was the only men's top 10 player set for Adelaide but Australia's world No.1 Ashleigh Barty and fellow leading players Simona Halep, Petra Kvitova and Angelique Kerber are set to take their places in the women's draw.

Normally the Sydney International is held immediately before the Australian Open but the NSW capital is instead hosting the finals stages of the new ATP Cup.

Adelaide International tournament director Alistair MacDonald said they respected Djokovic's decision.

“We know how disappointed Novak is about not being able to play in Adelaide this year and we hope to welcome him to the tournament next year,” he said.

“We understand his decision and wish him the very best of luck for the remainder of the ATP Cup and the upcoming Australian Open.”

The introduction of the new ATP Cup has reshaped the Australian tennis calendar. Adelaide lost its prized spot when the Brisbane International was launched in 2009.

Adelaide's Memorial Drive venue has undergone an $11 million redevelopment and will feature a new canopy roof over centre court.