Australia captain Steve Smith, vice-captain David Warner and Cameron Bancroft will leave the tour of South Africa ahead of the fourth and final Test of the series.
Cricket Australia chief executive James Sutherland insists knowledge of Bancroft's attempt to manipulate the ball with sticky tape against South Africa in Cape Town was limited to three players - Bancroft, Smith and Warner.
Tim Paine has been appointed captain of Australia's Test team and head coach Darren Lehmann will remain in his job.
Lehmann will continue in his role after a Cricket Australia investigation found that he had no prior knowledge of the plan to ball tamper during the third Test.
Matthew Renshaw, Glenn Maxwell and Joe Burns have been called up as replacements for Smith, Warner and Bancroft.
"I want to apologise to all Australians for what took place," Sutherland told a press conference in Johannesburg. "It's about the reputation and integrity of Australian cricket and Australian sport and whether Australians can take pride in their national team.
"The key finding is that prior knowledge of the ball-tampering incident was limited to three players - captain Steve Smith, vice-captain David Warner and Cameron Bancroft.
"The three players on report, we are contemplating significant sanctions, which will reflect the gravity of what has occurred and the damage it has done to the standing of Australian cricket.
"No other players or support staff had prior knowledge and this includes Darren Lehmann, who despite inaccurate media reports has not resigned from his position. He will continue to coach the Australia men's team under his current contract.
"Once the investigation has concluded in the next 24 hours sanctions will be announced. All three players who have been reported will leave South Africa tomorrow.
"Tim Paine has been officially appointed captain of the Australian men's Test team."
Cricket Australia chairman David Peever said in a statement: "We understand and share the anger of fans and the broader Australian community about the events that unfolded in Cape Town on Saturday.
"This issue goes beyond the technical nature of the offences and various codes of conduct. It is about the integrity and reputation of Australian Cricket and Australian sport.
"Ultimately, it is about whether Australians can feel proud of their national sporting teams.
"That depends as much on the way the players conduct themselves, as it does about winning or losing. It is about how we play the game."
A statement on Cricket Australia's website announced that Smith had been stripped of the captaincy for "at least the final Test in South Africa", with Paine "endorsed by the board as his successor and Australia's 46th Test captain".
Asked whether he believed the ball-tampering to be an isolated incident, Sutherland said: "The feeling from Iain (Roy, Cricket Australia's head of integrity) in his review is that it's an isolated incident, but again there are things that I don't want to go into too much detail around right now.
"I certainly hope it's an isolated incident, but it's certainly one of significant concern.
"This is not in the laws of the game, it is not in the spirit of the game and I am angry and disappointed. It is not a good day for Australian cricket."
