Harris has put country before cash ahead of next month's IPL Player Auction. He has decided not to put his name in the auction list.
The right-arm fast bowler has agreed to not play in IPL 7 at the behest of national coach Darren Lehmann and National High Performance chief Pat Howard, a report said.
"There is a lot of money involved (in the IPL) and with me coming towards the end of my career, you have got to try to maximise your career earnings," Harris told reporters in Adelaide on Friday.
"But when Darren and Pat Howard came to me and said 'we want you there in 2015', that made the decision for me.
"The fact that they're looking at a 35-year-old, by then; that they still want me involved in their team, that made the decision for me. I want to play for Australia as long as I can. I'd love to be able to do it all but in reality, my knee is going. So I have to make tough decisions and that is one of them," he was quoted as saying by Australian Associated Press.
The 34-year-old, who was part of the 5-0 thrashing of England in the recently concluded Ashes series, has played for the now defunct Deccan Chargers and Kings XI Punjab in previous editions of IPL.
Harris has so far played 21 Tests, equal number of ODIs and 3 Twenty20 Internationals.
This year's IPL Player Auction takes place on February 12 and 13 in Bangalore