"I'm disappointed to not take the court in Perth today," Williams said in a news release.
"I had every intention to play this morning. Unfortunately, due to inflammation in my knee I need to rest and am confident to be out there against Aussie Gold tomorrow evening."
Williams, who is using the event as preparation for her tilt at a 22nd grand slam singles title at the Australian Open later this month, will be replaced in the U.S. team by 20-year-old Vicky Duval.
(Reporting by Nick Mulvenney, editing by John O'Brien)
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