Earlier this month, the 24-year-old full-back-turned-fly-half was stood down for Super Rugby action by the Rebels for a second time this season after breaching behavioural guidelines of a programme to deal with alcohol problems.
Beale then voluntarily entered a private health facility on May 13 and the Australian Rugby Union, the players' association and the Rebels decided he should stay put in Sydney to complete the programme.
"All parties have agreed that it is in Kurtley's best interest and welfare to remain in Sydney around his support network for the foreseeable future," the Rebels said in a statement.
"Kurtley will play for his club Randwick in the Sydney Shute Shield competition during this time."
Randwick face Sydney University on Saturday.
Unsurprisingly, Beale was left out of the Wallabies preliminary squad of 25 for the three-test series against the British and Irish Lions in June and July.
The international door is not closed on Beale, however, with coach Robbie Deans able to add six players to his squad on June 11.
With the fly-half berth up for grabs in the Australia team, a fit and healthy Beale with his explosive pace and abundant skill would be a valuable asset to Deans.
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