The team doctor, Max Testa confirmed the news.
"Richie is recovering well from his fractured scapular he sustained in a crash during the Olympic Games road race," Dr Testa said.
"He has been gaining more and more mobility of his shoulder and he is functioning pretty well with his normal daily activities. The plan is to fully recover from his injury and get back to training at a normal level in the last few weeks of the season.
"He will likely be back on the bike next week but given the timing of the crash late in the season and necessary recovery period it has been decided between Richie and BMC Racing Team management that he will not race for the rest of the season, especially because for him there are not many target races at this time of the year."
Porte said he is feeling OK but does not want to rush recovery.
"I haven't been back on the bike since Rio in order to let my shoulder fully recover. But if all goes to plan then I'll be back on the bike next week.
"I'm feeling OK except for my ribs which are still hurting since the crash. I'm looking forward to recovering fully and then putting in a good off season to prepare well for next season."
This rules the Australian out of the World Championships in Qatar.
While the course for the road race is not suited to a rider like Richie Porte, he's strong in time trials. Australia is permitted to furnish two riders for the men's elite time trial. The team has not yet been announced.