Fast bowlers Nathan Bracken and Stuart Clark and batsmen Brad Hodge along with David Hussey and wicketkeeper Graham Manou have been dropped from the new contract list announced by Cricket Australia in Melbourne on Wednesday.
The five players have been removed from the 25 players contract list for 2010-2011 to make way for pacers Ryan Harris and Clint McKay, wicket-keeper batsman Tim Paine and all-rounders Steven Smith and Adam Voges.
The five new players selected in the list all started the 2009-10 period without CA contracts, but picked them up by the end after receiving sufficient upgrade points during that time.
Veteran pacer Brett Lee managed to retain his contract despite his recent injury and form struggles, while fellow speedster Shaun Tait also occupies a place on the list despite his status as a virtual Twenty20 specialist.
The list was assessed based on the players' form over the past 12 months and their likelihood of Australian selection in the coming year.
All contracted players will receive a minimum $200,000 retainer from CA, plus match fees, tour fees and prize money for any on-field success.
"The contract list has a good blend of experience and youth and recognises the very strong performances of the Australian side in Test and limited overs cricket this summer," CA National Selection Panel chairman Andrew Hilditch said.
"Ryan Harris receives his first Australian contract. Having overcome injury he has made the most of every opportunity in the Australian side this summer in all forms of cricket.
"Steve Smith is a young man who also receives his first contract. He has had a very exciting domestic summer, is part of our ICC World Twenty20 squad and is pushing hard for selection in both Test and one-day cricket.
"Shaun Tait has had his contact renewed as we see him as an important member of the ICC World Twenty20 squad and a real chance to force his way back into the Australian 50 over side," he said.
"It is disappointing for Stuart Clark and Nathan Bracken who have not received contracts for 2010-11. Both Stuart and Nathan have fantastic records for Australia and not renewing their contracts was a very hard decision. David Hussey is also very unlucky not to receive a contract after a very successful domestic season and is part of our ICC World Twenty20 squad," Hildtich added.