The Australian Professional Leagues on Saturday confirmed the one-year pause after WMG Football Club Limited, the club's owner and operator, was placed into liquidation last month.
The wind-up process has dragged out, with various reviews and appeals pushed back until next week at the earliest.
With the men's and women's seasons beginning in October, the APL moved to officially put the club on pause ahead of next week's fixtures announcement.
Players, including star midfielders Angus Thurgate and Dylan Leonard, are now free agents available to rival clubs while the transfer window remains open.
And any club on the hunt for a new coach can add John Aloisi to their list.
"The club needs time to work through these legal and regulatory proceedings and re-establish their financial and operating position, but with the timing and outcome for both up in the air, we need to progress with our plans for season 25/26 without Western United," APL executive chairman Stephen Conroy said.
"We see great value in the potential of Western United.
"The club has had great success on the pitch and their academies are an important pathway for emerging young talent in the Victorian football community - but we need to do what is best for the league, our partners and our other Clubs at this time.
"This is the best path forward for the league, and gives Western United the best opportunity to rejoin the A-Leagues and continue their work in the community."
The club's academies will remain in operation as they attempt to return for 2026 and beyond, potentially with a drastically rebuilt squad.
"Let us be absolutely clear: this is not a farewell, nor is it a step back," a Western United statement read.
"This is an investment in our future, a proactive move that will empower us to reset and come back revitalised.
"To our A-Leagues players, coaches and staff, we say simply and sincerely: we are sorry. The uncertainty you have faced is not what you deserved."
Lawyers for the club had sought a four-week adjournment to proceedings, claiming they had found a fresh $15 million investment to pay off their debts, but it was dismissed.
United last Friday evening confirmed they had a stay placed on the winding-up while they prepare an application to have the court's order reviewed.
Facing a tax bill amid concerns over unpaid wages and superannuation - and while under a FIFA registration ban - Western were stripped of their A-League licence by Football Australia last month.
FA's move followed continued delays to a takeover deal with American-based investors KAM, who ultimately withdrew their bid following the decision to revoke the Tarneit-based club's licence.
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