The Englishman was axed from the Rebels' recent two-week tour of South Africa and trained with the few players left at home after breaching the club's disciplinary code.
The controversy prompted reports the fly-half had quit the Rebels but assistant coach Damien Hill on Tuesday insisted that was not the case.
However, chief operating officer Steve Boland said today following the team announcement:
"The Melbourne Rebels administration continues to work through a number of issues with Danny Cipriani and his management.
"These discussions are now moving in a very positive direction, but at the moment Danny remains unavailable for selection."
Hill had said: "There are discussions taking place between the administration and Danny's management that will hopefully be resolved today and that will decide Danny's availability for selection.
"It's not ideal, but that's the way it is at the moment. There are issues that need to be resolved and that's being handled by the administration."
Cipriani has experienced a rollercoaster ride since arriving in Australia.
He was fined after reportedly taking a bottle of vodka from a Melbourne nightclub, but went from villain to hero by nailing a match-winning penalty in the Rebels' first ever victory.
The 23-year-old played important roles in Melbourne's two other Super Rugby wins against the Western Force and Hurricanes, but poor defence saw him dropped to the bench.
Cipriani then found himself in more hot water when he and team-mate Richard Kingi broke a team curfew after a loss to the Waratahs in Sydney in late April.
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