The 32-year-old returned home injured after playing his third test in Sri Lanka last July and was only recalled to the national team for last week's final test of the home summer against Pakistan.
O'Keefe had been named in the Sydney Sixers squad to make his return to BBL action in Monday's match against the Melbourne Renegades at the SCG before Cricket Australia pulled him out.
He will now focus on the five-day format and will be part of a group of players travelling to Dubai for a training camp ahead of the India tour.
"Post the Sri Lanka tour last year we have been in talks with Cricket New South Wales and Steve on the best way for him to prepare for the ... tour of India," CA team performance boss Pat Howard said.
