Beale, 24, was stood down indefinitely by his Rebels Super Rugby side earlier this month after failing to comply with an alcohol ban.
Beale has been in continual off-field strife this season and was suspended by the Rebels for striking team-mates Cooper Vuna and Gareth Delve during the club's tour in South Africa on March 23.
GALLERY: Super Rugby - Round 15
The Rebels and the Australian Rugby Union (ARU) issued separate statements about Beale on Monday, saying he had successfully completed the first stage of counselling.
"Following discussions between the ARU, RUPA (players' association) and the Melbourne Rebels, and Kurtley's departure from the health facility, 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 statement continued.
"Kurtley will play for his club Randwick in the Sydney Shute Shield competition during this time."
The Rebels have Super Rugby games against the Reds and Brumbies over the next fortnight before the late season recess for the British and Irish Lions tour.
Beale may not have many more opportunities to play for the Rebels who also have matches against the Lions on June 25 and then a final regular Super Rugby season game against the Otago Highlanders on July 12.
Coach Robbie Deans said Beale still has a chance of playing for the Wallabies against the Lions despite missing the preliminary Wallabies squad announced earlier this month.
The Lions kick off their Australian tour against the
Western Force in Perth on June 5 before three Tests against the
Wallabies in Brisbane (June 22), Melbourne (June 29) and Sydney (July
6).