The 22-year-old from Brisbane opted for surgery on an inflamed joint in her right shoulder after struggling at the current Pan Pacific Championships in Irvine, California.

Having the operation now will give Rice time to prepare properly for the 2012 London Olympics, her coach Michael Bohl said in a Swimming Australia statement.

Rice won gold medals in the 200 and 400 metres individual medleys and 800m freestyle relay at the 2008 Beijing Games.

“It’s the right decision long-term though, because the sooner I can get the shoulder looked at properly and have the surgery done, the sooner I can get back in the pool, training at 100 percent,” said Rice.

"Obviously it's a big disappointment to me.

"I have to think about the bigger picture, and that's definitely London 2012.

"It's going to be really hard to watch the team go away [to Delhi] and watch everyone race."

Rice joins a long list of absentees from the Games led by Jamaica's Usain Bolt and which also includes Britain's Sir Chris Hoy and Jessica Ennis.

Rice said the surgery would be a "clean-out" rather than reconstruction.

"They have told me rehab is 12 weeks, I guess four weeks out of the water if the surgery goes well," she said.

Australian head coach Leigh Nugent admitted her loss was a big blow to the team, but indicated it would be worth it if Rice is at full strength for the 2012 Olympics in London.

"She's the spearhead of our women's team, if not the whole team," Nugent said.

"We'll be taking a step backward to take a step forward in the future."


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